US stocks continued their upward trend, as the markets continue to price in the end of the tightening cycle from the Federal Reserve. Recent data releases reaffirmed this trend, with US producer prices falling unexpectedly due to a decline in energy input prices. Retail sales also showed a decline in October by 0.1% month-over-month, but previous months were revised higher, indicating the resilience of the economy's consumers. The dollar remained at 104.50, and the 10-year US Treasury yield is fluctuating around 4.50%. Elsewhere, the European Union forecasted that the euro area would avoid a recession, with growth expected to return by the end of the year. The region's continued price softness and robust job market will support this growth.
In the base metals market, broad gains were seen today, buoyed by China's solid economic performance. Both consumer spending and industrial activity expanded faster than expected in October, by 7.6% and 4.6% year-over-year, respectively. The property market, however, continued to deteriorate, prompting expectations of more government stimulus. Copper rose for the third consecutive day, strengthening up to $8,265/t; aluminium remained unchanged at $2,232.50/t. Meanwhile, lead and zinc rallied once again, with both on the verge of breaching their September highs of $2,250/t and $2,660/t, respectively. Nickel edged higher to $17,421/t.
Oil futures fell to $77/bl and $81/bl for WTI and Brent, respectively, offsetting yesterday's gains. Gold remained unchanged, while other precious metals with industrial uses, such as silver, jumped higher and are now priced at $23.40/oz.
All price data is from 15.11.2023 as of 17:30