US stocks weakened amid corporate earnings results as markets await Jerome Powell’s speech today to help guide the outlook for the monetary policy path. Other Fed policymakers will be speaking this week. Although their remarks may remain vague, we anticipate increased volatility following their speeches in both the bond and equity markets. Today’s economic data was mixed: US initial jobless claims dropped to 198,000 in the week ending October 14th, the lowest level since January, underscoring labour market tightness. Meanwhile, previously-owned sales fell to the lowest level since 2010, given continued rises in fixed mortgage rates. The dollar struggled above 106.70, and the 10-year US Treasury yield tested the highs near 5.00%.
Elsewhere, Chinese housing market data continued to disappoint, with home prices falling at the fastest pace in almost a year. Despite major cities rolling out measures to stimulate the market, prices there continued to decline rapidly. Still, China’s fundamentals struggled to impact the base metals complex today, as most metals remained broadly unchanged. Aluminium and copper remained below key resistance levels of $2,200/t and $8,000/t, closing at $2,185/t and $7,993/t, respectively. The support level at $18,380/t for nickel continued to hold firm, causing the metal to trade at $18,380/t. Lead and zinc remained unchanged, settling at $2,097.50/t and $2,414.50/t, respectively.
Both oil futures and precious metals remained elevated.
All price data is from 19.10.2023 as of 17:30