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Authors
Viktoria Kuszak

Viktoria Kuszak Research Associate

Contact research Contact Industrial Commodities

Consumer confidence plunges, markets cautious

Summary

•    US stocks decline on sharp consumer confidence drop.
•    Dollar and bond yields weaken amid economic uncertainty.
•    Commodities broadly retreat on cautious market sentiment.

US stocks opened lower today after the latest Conference Board Consumer Confidence report, a widely-followed indicator reflecting consumers' optimism regarding economic conditions, fell more sharply than anticipated. The index dropped significantly to 98.3 in February from an upwardly revised 105.3 in January, marking its largest monthly decline since August 2021. This suggests increasing concerns among US consumers about the economic outlook, likely driven by uncertainty surrounding the potential consequences of Trump's recent tariff announcements. The dollar weakened broadly against other major currencies, including the euro, sterling, and yen, pushing the dollar index below the 106.4 level. At the same time, the 10-year US Treasury yield declined sharply to 4.3%, its lowest since mid-December, indicating that markets are increasingly cautious about growth prospects and potential impacts from retaliatory trade measures against US tariffs.

Base metals extended their declines today amid limited trading activity and cautious market sentiment. Copper retreated further to $9,435/t, moving away from recent highs as weakening COMEX arbitrage continued to weigh on the metal. Aluminium slipped slightly to $2,645/t, remaining range-bound after its recent drop. Nickel also lost ground, falling to $15,340/t as momentum remained subdued. Tin saw a big decline, dropping nearly 1.8% to $32,650/t, continuing to reverse recent bullish gains. Lead was an exception, holding steady with minor gains, trading just below $2,000/t. Overall, the base metals complex remains cautious, awaiting fresh catalysts.

Gold prices also retreated, dropping back below the $2,900/oz mark as investors locked in recent gains. Silver followed suit, experiencing a significant pullback to trade at $31.4/oz. Oil prices weakened, with WTI falling to $68.9/bbl and Brent crude declining to $72.9/bbl.

25022025

All price data is from 25.02.2025 as of 17:30

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