US stocks rebounded yesterday in hopes of the new variant causing limited damage to the global economy. US productivity fell in Q3 by 5.2%, below market consensus. In the latter half of the day, the dollar shot up, and the 10yr US Treasury yield edged higher. The data showed that private consumption was the biggest driver behind the euro-area growth in Q3, which saw softening quarter-on-quarter, in part due to the removal of government support. Exports in China continue to beat record highs, growing by 22% y/y in November, supported by strong demand and easing restrictions around power usage for manufacturers. Elsewhere, UK consumers returned to the shops for Black Friday deals and pre-Christmas shopping, indicating a robust appetite for goods and services.
Metals prices were firmer yesterday as risk returned following the Omicron sell-off. Aluminium strengthened into the resistance of $2,633/t, but that level held firm, and the metal closed at $2,628.50/t. Copper was supported above $9,500/t and managed to close higher on the day at $9,595/t. Zinc was the largest mover and held above $3,200/t; the metal closed the day at $3,226.50/t. Nickel was stronger, closing at $20,189/t. Only lead was seen down on the day, closing below the support level of $2,200/t at $2,186/t.
Oil futures followed the general market, with WTI and Brent rallying to $72.53/bl and $75.88/bl. Precious metals were primarily range-bound.
For more in-depth analysis of base and precious metals, please see our Quarterly Metals report.
All price data is from 07.12.2021 as of 17:30
