US markets opened flat, not responding to the consequences of the mass IT outage that gripped businesses today. However, as markets end a turbulent week, US investors are focussing on the tech earnings results season, which spurred calls for a recent equity consolidation. All eyes will be on the Fed, as markets are increasing their bets for a September cut, which is traditionally bullish for riskier assets. We believe that markets are biased for US weakness, and any signs of softer inflation or labour prints could prompt investors to double down on softer interest rates speculation. The dollar remained broadly unchanged as the 10-year US Treasury yield jumped back above 4.2% to 4.23%.
Base metals continued to soften today. However, the downside momentum is seen slowing as markets are testing new support levels. In particular, copper tested the support at $9,300/t, closing at $9,310/t, which is in line with yesterday's lows. Aluminium was weaker, falling for the 5th consecutive day to $2,351.50/t. Lead and zinc were also lower. Tin gapped lower on the open; however, prices struggled below the $31,000/t level, and the metal came back to $31,050/t.
Oil hovered in tight ranges. Precious metals sold off today, despite a potential for a flight to quality, as markets questioned this week's rally, prompting gold and silver to weaken to $2,400/oz and $29.20/oz, respectively.
All price data is from 19.07.2024 as of 17:30
