US stocks opened higher today, with market sentiment buoyed by key economic data. S&P Global US Composite PMI showed little change at 54.4 for September, compared to 54.6 in August, indicating steady growth across the manufacturing and services sectors. The dollar index briefly spiked following the PMI release but settled back around 100.8. Meanwhile, the 10-year Treasury yield continued its upward trend, nearing 3.8% at the time of writing. In the Eurozone, business activity contracted more than expected, with services flatlining and manufacturing slowing further. The HCOB composite PMI dropped to 48.9 from August’s 51.0, marking its first dip into contraction territory since February.
Base metals prices held steady despite an earlier dip driven by a spike in the dollar. Aluminium and copper held firmly above $2,450/t and $9,400/t, respectively. Lead and zinc remained broadly unchanged. Nickle continued to gain marginal upside, testing the $16,500/t level today. From the macroeconomic perspective, China scheduled an Economic Brief on Tuesday following a short-term rate cut, boosting hopes of possible fiscal policy support injection. This could prompt markets slightly higher tomorrow, although we do not expect the gains to be significant, given continued downbeat confidence in the nation’s economic recovery in the near term.
Gold hit another record high, trading at $2,630/oz, while silver slipped, giving up yesterday’s gains to stand at $30.85/oz. Oil prices fluctuated amid speculation of potential China stimulus and softer PMI prints in the US and Europe, with WTI and Brent crude trading at $71.2/bbl and $74.6/bbl, respectively.
All price data is from 23.09.2024 as of 17:30
