US stocks softened today, driven in large by the big tech. Apple shares sank on concerns that China can expand the iPhone ban. Further weakness was brought on by softer labour market data, reinforcing the belief of the higher for longer interest rate narrative. US initial jobless claims came in at 216,000 in the week ending September 2nd, marking February lows. This is once again highlighting that the market is slowing marginally however, remaining robust given the historical averages. Elsewhere, GDP data out of the euro area pointed to a lower revision for Q2 performance, growing at 0.1% vs. 0.3% that was estimated in July; lower-than-expected exports were the main factor behind the downward revision. Furthermore, German industrial output fell by 0.8% m/m in July, adding to recessionary worries that are looming over the bloc’s most industrial economy. The dollar retested the 105 level, and the 10-year US Treasury yield held firm at 4.27%.
Mixed performance was seen across the base metals market today, and a stronger dollar and respective weakness in the yuan struggled to sway prices in either direction. Other data pointed to exports out of China falling by 8.8% y/y, vs. -14.5% seen in July. A similar trend was seen in the nation’s imports. While it is too early to tell whether trade activity is rebounding, the signs of an easing slump are a welcome relief to China’s economic performance. Aluminium decline is seen stalling, with another day of little momentum, as the metal remained just below the $2,200/t level, closing at $2,196/t. Copper, on the other hand, weakened for the second consecutive day down to the support of $8,300/t before settling slightly higher at $8,321/t. Lead and zinc held on to their gains, closing at $2,229.50/t and $2,479.50/t, respectively.
Oil futures remained unchanged, while gold and silver performance diverged slightly to $1,920/oz and $22.98/oz, respectively.
All price data is from 07.09.2023 as of 17:30