US stocks continued on the upside today. Labour market data published by the Bureau of Labor Statistics showed a higher-than-expected increase in non-farm payrolls in March, reaching 303,000 jobs compared to expected 214,00. At the same time, the unemployment rate ticked lower to 3.8% YoY, pushing forward investor’s expectations of the start of monetary easing. Following the data release, the futures market adjusted its outlook, with forward swaps now indicating only a 60% likelihood of a 20-basis point rate cut by the Federal Reserve in mid-year. The 10-year US Treasury yield initially surged following the announcement but eventually stabilized at 4.35%, while the dollar index slightly rose to 104.4.
Upbeat macro momentum supported base metals’ price action today, however, given the rally that took place in recent days, the appetite was not enough for prices to breach robust resistance levels. In particular, aluminium and copper struggled above $2,500/t and $9,400/t, prompting prices to close below these levels at $2,450.50/t $9,329.50/t, respectively. Likewise, lead erased most of yesterday’s gains, falling back to $2,123.50/t. Zinc prices remained elevated at $2,638.50/t.
Gold reached a new milestone, surpassing the $2,300 mark to hit $2,325.5/oz, while silver also saw gains, nearing $27.4/oz. Meanwhile, oil prices, which saw a significant rise at the end of the last day, remained stable today. WTI and Brent crude were steady, trading at $86.8/bl and $91/bl, respectively.
All price data is from 05.04.2024 as of 17:30
