US stocks opened lower today. MBA Mortgage Applications, a weekly measure of nationwide home loan requests, fell by 5.7% for the week ending May 24th. Despite the prolonged period of high interest rates deterring many potential homebuyers, the US economy remains robust enough for the Federal Reserve to delay monetary easing until the fourth quarter of 2024. The recent comments from the policymakers highlight the importance of bringing inflation closer to the 2% target level before proceeding with monetary easing. Forward swaps are currently pricing in the first interest rate cut in November. The dollar index rose today, trading just below 105.0, while the 10-year US Treasury yield increased to 4.6%.
Today's trading on the LME exchange was moderately quiet. Copper continued to fluctuate around the $10,500/t level as the tightness eased in the market, offering investors a clearer view of potential future price outlook. We believe that, although prices are likely to remain high in the medium term due to underlying fundamental factors, we might see a slight correction soon to ease some of the recent market upside that took place in recent months. Lead and zinc followed suit, softening into $2,319.50/t and $3,103/t, respectively. Meanwhile, aluminium's price has surged to $2,767.50/t, hitting a 2-year peak, propelled by the strength in alumina prices.
A stronger dollar and rising Treasury yields created headwinds for gold, causing the precious metal to decline to $2,342/oz. Silver remained mostly unchanged, hovering around the $32/oz level. Oil prices fluctuated, with WTI at $79.5/bbl and Brent crude at $83.8/bbl.
All price data is from 29.05.2024 as of 17:30
