US stocks continued on the upside today. The Bureau of Labor Statistics data released today led investors to believe that no more Fed interest rates would be needed in the current tightening cycle. Change in Nonfarm Payrolls increased by 150k in October, marking a significant decrease from 336k recorded in the previous months, while unemployment rate edged higher to 3.9% YoY. Furthermore, S&P Global US Services PMI came out lower than expected at 50.6 compared to 50.9 in September. The data prove that the prolonged period of high borrowing costs have had an impact on the world’s largest economy. The 10yr US Treasury yield fell to 4.55%, the lowest level since October 12, while the dollar depreciated to 105.075 not seen since September.
The fall in yields and softer dollar pushed base metal prices higher today. Aluminium made up most of the losses from the last few days, climbing to $2254/t. Lead and zinc surged to levels not seen since September and stood at $2171.5/t and $2524.5/t, respectively. Copper edged higher to $8175.5/t, marking the second straight week of gains.
The expectations of the end of the Fed’s tightening cycle increased the attractiveness of precious metals driving gold and silver higher to $1992/oz. and $23.2/oz, respectively. At the same time, Friday marked a second weekly loss in oil prices as fears of a wider regional war stemming from Israel-Hamas conflict subsided. WTI decreased to $81.29/bl, while Brent declined to $85.76/bl.
All price data is from 03.11.2023 as of 17:30