US stocks surged today following the release of the University of Michigan Sentiment Index, which indicated a significant increase in consumer confidence. The preliminary reading for January rose to 78.8, compared to the previous month's 69.7. This index is designed to assess consumer attitudes and expectations regarding their personal finances, the overall economy, and their intentions to purchase various goods and services. Both of its main components, the Current Economic Conditions Index and the Index of Consumer Expectations, reached their highest levels since mid-2021. US macroeconomic data continue to highlight the persistent resilience of the world's largest economy in the face of elevated interest rates. This has reduced investors' expectations of a rate decrease in the federal funds rate for this quarter, thus keeping Treasury yields at elevated levels. The 10-year US Treasury yield continued its upward trend, reaching 4.20% - the highest level since mid-December 2023, while the dollar remained relatively stable at 103.405.
Aluminium extended its losses from yesterday, trading at $2168.0/t, while copper saw a slight increase to $8349/t. Lead gained momentum and closed higher at $2,105.5/t, but nickel and tin depreciated to $16,156/t and $25,298/t, respectively.
The growing expectations of higher interest rates for an extended period pose challenges for precious metals. Gold experienced fluctuations today and settled at $2024.6/oz, while silver depreciated to $22.5/oz. Both WTI and Brent crude oil prices posted losses, trading at $73.63/bl and $78.72/bl, respectively.
All price data is from 19.01.2024 as of 17:30
