US stocks strengthened once again today after a solid gain in tech shares. PCE’s inflation gauge softened to 3.8% y/y in May, suggesting continued moderation in pricing pressures. The core measure rose by 4.53% y/y and 0.23% on a month-by-month basis, the smallest advance since July 2022, suggesting slowing upside momentum. Person income remained broadly unchanged; however, the pace of spending reduced sharply, suggesting changes in consumer spending habits. The dollar weakened back below 103, and the 10yr US Treasury yield saw moderate downside after yesterday’s protracted gains. Elsewhere, Euro area core inflation re-accelerated in June, despite mixed performance within the bloc, growing by 5.4% as the cost of services picked up.
Base metals recovered some of the earlier losses after positive data releases from the US. Copper jumped higher to breach the $8,300/t resistance level to close at $8,315.50/t. Tin gapped higher on the open, offsetting this week’s losses, closing at $26,787/t. Likewise, lead strengthened into the $2,100/t resistance level to close at $2,388/t. Only aluminium continued to edge lower, down to the robust support level of $2,150/t. Lead closed at $2,099.50/t.
Both the oil futures and precious metals remained broadly unchanged.
All price data is from 30.06.2023 as of 17:30