US stocks opened lower today following GDP data from the world's largest economy, which indicated slower growth in the first quarter than previously estimated. The US economy expanded at an annualized rate of 1.3% from January through March, down from the initial estimate of 1.6% and significantly slower than the 3.4% pace in the final quarter of 2023. Markets are now awaiting the release of the Personal Consumption Expenditures (PCE) index tomorrow, which will provide crucial insights into living expenses and consumer spending in the US. This information is pivotal for investors as they assess the Fed's next moves in monetary policy. Both the 10-year US Treasury yield and the dollar index retreated from yesterday's gains, trading at 4.55% and 105.7, respectively. Elsewhere, the unemployment rate in the Eurozone decreased in April, with the latest reading at 6.4% YoY, hitting record low.
Base metals corrected today, falling from the recent highs reached yesterday. We suspect that with recent market tightness alongside an extended period of upside pressures, the price disconnect with the fundamental picture widened, creating an opportunity for an overdue correction. This is particularly true for aluminium and copper, which have continued to gain ground on the back of strong speculative appetite. We believe further softness may be necessary to bring metals prices back to their fair value. In the meantime, copper is trading below the robust trend support to close at $10,135/t; aluminium dropped from a 2-year high back to $2,794/t. The rest of the complex followed suit, indicating that the market's movements are more collective than based on individual metal fundamentals. Lead and zinc closed at $2,277/t and $3,071.50/t at the time of writing.
Gold recouped some of yesterday’s losses, standing at $2,345/oz, while silver dropped to $31.4/oz. Oil prices softened, with WTI at $79/bbl and Brent crude at $83.2/bbl.
All price data is from 30.05.2024 as of 17:30
