US stocks followed Chinese shares lower as investors move away from riskier assets and flock to save havens amid fears of a broader conflict escalating in Israel. The dollar fluctuated today and stood at 106.24, while the 10yr US Treasury yield remained unchanged at 4.8% given Columbus Day, which is considered a holiday by the Federal Reserve. Minutes from both Fed and ECB coming out this week will likely guide the markets in the monetary policy outlook for November. US CPI reading due on Thursday is expected to edge lower at 3.6%. While the forecast shows a big improvement from last year’s highs, inflation proves to be sticky, which should keep high borrowing costs for longer.
The conflict in Israel has shifted attention to oil futures and away from metals, leading base metal prices to take a backseat. Copper extended Friday’s gains, rising back above the $8,140.5/t level. Aluminium edged higher to $2,266.5/t. Lead weakened to $2,121.5/t, while zinc bounced higher to $2,465.5/t. Nickel closed higher at $18,489/t.
Oil futures strengthened to $86.2/bl and $87.90/bl for WTI and Brent, respectively, amid heightened volatility given the Israeli conflict. Gold rebounded to $1852/oz, while silver remained unchanged at $21.8/oz.
All price data is from 30.10.2023 as of 17:30