US stocks fluctuated on the open today, with treasuries resuming their rally, as macro releases pointed to further labour market softness. In particular, the job opening data came in below expectations at 8,733k in October, the lowest level since 2021, reaffirming market belief of a softer economic environment in the US. Still, nonfarm payrolls are expected to have increased to 189,000 in November. The 10-year yield is now at 4.17%, while the dollar was seen testing the 104 level. Meanwhile, the US service sector expanded in November, and at a faster-than-expected pace, as business acidity and employment improved.
Continued softness trickled through the base metals complex today after Moody’s cut its outlook for Chinese sovereign bonds to negative, highlighting the growing concerns in the financing segment of the economy. As a result, aluminium dropped to test the $2,150/t level, August lows, and copper dropped below $8,400/t, reversing last week’s gains. Lead marked the 12th consecutive day of declines, falling to October lows of $2,054/t; the metal settled at $2,051.50/t. Likewise, zinc is also seen touching the October support level of $2,400/t, closing slightly higher at $2,421.50/t. Nickel is struggling to break the $16,000/t level.
Oil futures remained broadly unchanged, and precious metals weakened sharply today, following gold’s jump yesterday; the metal now trades at $2,014/oz.
All price data is from 05.12.2023 as of 17:30