US stocks declined yesterday after the comments from the Fed, stating that the central bank is on track to taper bond purchases and outlined that it would raise interest rates in case of higher inflationary risks. US service industry grew in September, with IHS market flash index up to 58.2, the highest in 3 months; manufacturing performance softened. The dollar remained marginally unchanged, and the 10yr US Treasury yield softened; the 5yr yield continued to beak multi-year highs and is now at 1.21%. Elsewhere, Russia hiked the rates once more, up to 7.50%. UK retail sales fell for the fifth straight month as consumer confidence softened in September.
Another day of declines on the LME market yesterday, only with lead closing higher at $2,423/t. Copper prices softened to test appetite at $9,700/t, but support at that level triggered a close at $9,704/t. Zinc sell-off moderated today, but prices struggled above $3,450/t to close at $3,447.50/t; cash to 3-month spread strengthened into to -$51.00/t. Likewise, aluminium remained under pressure, closing at $2,868/t. Nickel broke through the support level of $20,000/t level and closed lower at $19,739/t.
Oil gained ground, finishing the week strong, given the lacklustre supply from OPEC and shrinking crude inventories. WTI and Brent traded at $83.04/bl and $85.04/bl. Precious metals were also seen marginally higher, with gold and silver edging up to $1,788.90/oz and $24.31/oz, respectively.
For more in-depth analysis of base and precious metals, please see our Quarterly Metals report.
All price data is from 22.10.2021 as of 17:30