US stocks opened higher today, with the S&P once again breaking a record, surpassing the 5,850 mark. As we edge closer to the elections, volatility is creeping up, fuelled by growing uncertainty around potential policy shifts. The dollar continued its upward streak, marking its 11th consecutive day of gains, trading at 103.2. Meanwhile, the 10-year US Treasury yield also increased, standing at 4.1%.
Over the weekend, the Ministry of Finance provided little financial details for fiscal support. However, the policy tone was positive, reiterating the need to stabilise housing prices and market sentiment. At the same time, recent trade figures showed that China’s exports are growing slower than expected, adding to muted consumer sentiment. In response to these announcements, SHFE investors boosted prices on the open, interpreting briefing news as more positive. On the other hand, the LME was less forgiving, with prices softening across the board. Investors outside of China believe that the lack of clarity is not contributing to the already muted longer-term narrative, which is reflected in current prices. Aluminium and copper edged slightly lower to $2,594/t and $9,659.50/t, respectively. The rest of the complex held their nerve, failing to break recent support levels.
Gold attempted to break above $2,660/oz but failed to maintain momentum, pressured by the strong dollar and rising yields. Silver, however, edged slightly higher, trading at $31.18/oz at the time of writing. Oil prices softened, with WTI at $74.1/bbl and Brent crude at $77.6/bbl.
All price data is from 14.10.2024 as of 17:30