US stocks remained broadly unchanged on Friday after tech shares’ gains cooled. The dollar continues to pare gains, and the 10yr US Treasury yield rose back up to 3.82%. Next week is filled with key central bank meetings, and while the market is pricing in further tightness from the BOE and the ECB, the outlook for the Fed remains uncertain into the year-end. Meanwhile, the yen tumbled to 141.72 against the dollar after the inflation core reading advanced in June, growing by 3.3%, matching consensus. Traders now believe there is a smaller chance of a hawkish move from the BOJ and the possibility of the yield curve control measures.
Base metals continued to shed last week’s gains into Friday after a stronger dollar brought the complex back to robust support levels. Aluminium remained above $2,200/t while copper retested the resistance of $8,500/t, struggling above it to close at $8,4452/t. Meanwhile, lead jumped higher, closing at mid-June highs of $2,139.50/t. Zinc weakened to $2,372/t. As a result, zinc to lead spread has fallen to June 2020 lows of $235.50/t, further highlighting the pressure on construction-heavy materials. Tin closed at $28,494/t.
Oil headed for a fourth weekly gain amid signs that global markets are tightening; WTI and Brent are now trading at $76/bl and $80/bl. Gold slipped today but still closed the week slightly higher at $1,961/oz.
All price data is from 21.07.2023 as of 17:30