US stocks showed strength today, buoyed by new data that underscored the continued resilience of the US economy. Last week's jobless claims came in lower than anticipated, with initial claims at 208,000 and continuing claims at 1,781,000, both indicators suggesting robust employment conditions. Additionally, a rise in factory orders from 1.4% in February to 1.6% in March confirmed sustained consumer demand, reinforcing economic strength. Despite Federal Reserve Chairman Jerome Powell's remarks yesterday hinting at potential interest rate cuts later this year, market expectations have solidified around the possibility of monetary easing commencing in November. Following Powell's comments, the dollar experienced a drop but remained stable today at 105.6. The 10-year US Treasury yield also adjusted slightly, settling at 4.6%.
Today's trading in the base metals complex was mixed, with aluminium and copper showing notable softness. Aluminium struggled to maintain its position above the $2,600/t level once again, prompting prices to correct to $2,528/t. Similarly, copper remained below the $10,000/t level, testing the robust trend support at $9,790/t. A drop below this threshold could lead to further price corrections. Additionally, as Chinese markets reopen on Monday after the holiday, we believe that any sustained risk-off mood could exacerbate declines due to increased market activity. Lead and zinc held firmly today at $2,180/t and $2,886/t, respectively.
Gold prices saw a slight decline to $2,303/oz, while silver prices held steady at $26.6/oz. Oil prices continued their downward trend, with WTI and Brent trading at $78.7/bl and $83.3/bl, respectively.
All price data is from 02.05.2024 as of 17:30
