US stocks opened lower today, pulling back from the record highs achieved yesterday. Recent economic data indicating continued resilience in the US economy has cast doubt on the likelihood of three rate cuts in 2024, as previously expected. The two-day Federal Reserve policy meeting is anticipated to conclude with borrowing costs remaining unchanged. This week, investors will be closely monitoring for any indications of when rate cuts might begin, with September and November being key periods of interest. The 10-year Treasury yield remained mostly steady at 4.45%, while the dollar index increased to 105.5.
Today, the base metals market showed a slight softening, hinting that the bearish momentum might be losing steam. Notably, copper prices bounced back after briefly dipping below the $9,745/t mark. Likewise, nickel and zinc held ground, staying above their previous day's lows at $17,900/t and $2,772/t, respectively. Aluminium experienced a modest decline, following previous copper softness, especially after it failed to cross the $2,600/t threshold last week. On the other hand, lead was the exception as it continued on a downward trend, which we believe is due to it being overvalued above the $2,250/t level from a fundamental standpoint.
Gold appreciated today, reaching $2,315/oz, while silver edged lower to $29.18/oz. Oil prices remained relatively stable, with WTI and Brent crude trading at $77.4/bbl and $81.4/bbl, respectively.
All price data is from 11.06.2024 as of 17:30
