US stocks declined, with the S&P 500 falling to a 3-month low, amid growing concerns over the impact of high interest rates on the economy. This was further solidified by the consumer confidence report, which fell to 103 from a revised 108.7 in August, with consumers citing financing and employment prospects as their main worries. New home sales fell to a 5-month low as prices continued to climb, further squeezing potential demand. The 10yr US Treasury yield dropped, but still settling above 4.50%, and the dollar continued to strengthen above 106. Although the expectation of higher interest rates has been in place for quite some time, markets are still adjusting to this sentiment. We expect the dollar to continue to edge higher into the year-end while yields remain elevated.
A mixed day of trading was seen across the base metals complex. Copper continued to weaken, falling below the support level of $8,100/t; the next robust support level now stands at $8,000/t. Likewise, nickel continues to breach new lows, falling to close at $18,877/t – the low not seen since July 2022. Aluminium remained unchanged at $2,243.50/t. Lead and zinc held their ground, closing at $2,186.50/t and $2,511/t, respectively.
Oil futures struggled below the near-term support levels, and both WTI and Brent are now back above $90/bl and $93/bl. Gold and silver continued to soften to $1,904/oz and $22.90/oz, respectively.
All price data is from 26.09.2023 as of 17:30