Global stock markets continued to rebound today from the losses experienced on Monday. Investors realised that the Monday sell-off was overdone, leading to a recovery and appreciation of previously sold-off assets. The dollar index climbed to 103.2, while the 10-year US Treasury yield increased to 3.9%. We believe the US economy remains relatively resilient, maintaining the trajectory towards a soft landing. The dollar continues to be the most attractive safe-haven currency and is likely to trade in the 103-104 range throughout August. Elsewhere, China's trade surplus narrowed to $84.65 billion in July, compared to the $99 billion forecast and $99.05 billion recorded in June. Exports in July grew at the slowest pace since April, reflecting a slowdown in China's manufacturing sector and indicating weaker global demand ahead.
Softness was seen across the base metals market today, with copper heading for its lowest close since March. The metal closed at $8,769.5/t as stockpiles increased by the most since 2020, suggesting that demand for copper is not keeping pace with supply. Aluminium declined, closing at $2,288/t, while nickel depreciated and closed at $16,296/t. Conversely, lead and tin saw small gains, closing at $1,967.5/t and $29,991/t, respectively.
The sell-off in precious metals paused today, with prices edging slightly higher. Gold increased to $2,395/oz, while silver hovered around the $27/oz level. Oil continued to trade higher, with WTI and Brent crude at $75.8/bbl and $78.5/bbl, respectively.
All price data is from 07.08.2024 as of 17:30
