US stocks fell while Treasury yields jumped higher to highs not seen since 2007 after strong private hiring data added to the Fed’s expectations of tightening. In particular, the 2yr yield tested the 5.11% level, while 10yr is now above 4.00%. The dollar remained above 103. ADP data pointed to the most jobs added in over a year in June, at 497,000, highlighting labour market resilience in the US. The forward swaps continue to price up their bets, with 35bps expected by the end of the year. At the same time, the service sector expanded at the fastest pace in four months, driven by the uptick in demand from the consumer side.
Mixed performance was seen across the base metals space today. Aluminium broke below the support of $2,150/t to close at $2,129/t – the September 2022 low. Meanwhile, tin shot up higher, breaking above the January high of $29,000/t to close slightly below, at $28,530/t. Tin ore supply remains in shortage, especially after the news of possible halts in some of the Myanmar mines, adding to the tight supply/demand balance sheet this year. As a result, some smelters incurred losses given the current concentrate TC prices. Elsewhere, copper edged lower to $8,261.50/t. Lead and zinc closed marginally unchanged at $2,050.50/t and $2,363.50/t, respectively.
Oil futures fluctuated over the course of the day but settled pretty much unchanged, with WTI and Brent at $71/bl and $75/bl. Precious metals continue to drift lower; gold and silver are trading at $1,908/oz and $22.70/oz at the time of writing.
All price data is from 06.07.2023 as of 17:30