US stocks weakened on the first day of the month after disappointing corporate earnings results drove the risk-off sentiment across the board. Moreover, mixed labour market data weighed on the momentum. US job openings fell to the lowest level since April 2021 in June, with hiring declining to February 2021 lows. At the same time, layoffs fell to lows of Q4 2022, suggesting that while hiring has decreased, companies are less willing to let employees go. That would also help maintain the unemployment level at historic lows. The dollar strengthened above 102, and the 10yr US Treasury yield is now back above 4.00%.
Metals that benefitted from yesterday’s gains weakened today, suggesting that pledges from key policymakers are not enough to sustain the momentum across the complex until we see sustainable gains in economic growth prospects. At the same time, home sales in China fell by the most in a year, underscoring the weakness in the housing market despite recent support from the PBoC to prop up the property sector. Tin prices, in particular, weakened below the robust $28,000/t level after the official blanket ban on ore exports from Myanmar has taken place, suggesting markets do not anticipate immediate tightness in the physical market. As a result, the cash to 3-month spread has flipped back into contango. Copper struggled above $8,800/t as it weakened back to $8,631/t, and aluminium weakened into $2,255.50/t. Both lead and zinc closed lower at $2,147/t and $2,569/t, respectively.
While oil futures softened, gold and silver erased yesterday’s gains back to $1,944/oz and $24.18/oz, respectivel
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All price data is from 01.08.2023 as of 17:30
