US stocks opened higher today, attempting to recover from the losses of the previous few days. In the world's largest economy, mortgage applications dropped by 0.7% for the week ending March 22, building on the 1.6% decrease from the prior week and further diminishing the robust mortgage demand seen earlier in the month. US homebuyers have been feeling the impact of a prolonged period of high borrowing costs, and there is anticipation that a shift in the Fed's policy may be on the horizon. The upcoming inflation data on Friday will provide a clearer picture of whether the anticipated first interest rate cut will materialize in June. Meanwhile, the dollar index remained relatively stable at 104.36, and the yield on the 10-year US Treasury note experienced a slight decrease, settling just below 4.2%.
Marginal moves were seen across the base metals space today, given the absence of dollar moves. This implies that on days when the market is not influenced by economic factors or technical indicators, traders tend to monitor the dollar to determine the direction of the market. Aluminium and copper edged slightly lower but once again held the support levels at $2,300/t and $8,800/t firm, closing at $2,298.50/t and $8,8449.50/t at the time of writing. Lead posted the sixth consecutive day of declines, falling to test a robust $2,000/t support level. Zinc was also seen lower at $2,437/t.
The decline in US Treasury yields was accompanied by a jump in precious metal prices. Gold appreciated to $2,190/oz, while silver also increased to $24.5/oz. Oil prices edged lower, with WTI and Brent crude trading at $81.4/bl and $85.3/bl, respectively.
All price data is from 27.03.2024 as of 17:30
