US stocks fell yesterday, led by energy and industrial shares, as prevailing threats of inflation swayed the markets. The 10yr Treasury yield edged higher to 1.6289%, and the dollar weakened as a result. Job openings in the US surged to a record high of 8.12m in March, and the number of vacancies exceeded hires by more than 2m, evident to current hiring challenges. Meanwhile, the US home prices surged by the most in Q1 2021, as the number of buyers exceeded the available inventory, supported by low mortgage rates. Elsewhere, German investor confidence jumped to the highest level in more than 21 years, as the country’s inoculation programme is gaining pace. US CPI data is out today and is expected to grow at 3.6% in April, vs 2.6% in March.
Metals on LME were mostly higher yesterday, apart from aluminium, which closed lower on the day at $2,521/t. Copper traded near the previous-day record, close marginally higher at $10,460/t. SHFE copper was also higher on the day, closing at CNY66,690/mt. Nickel prices tested $18,000/t in the second half of the day but struggled above that level and closed at $17,936/t. Zinc was well bid, breaking above the resistance level of $3,020/t and closing lower at $3,009/t. Lead was range-bound, closing higher at $2,222/t; cash to 3m spread widened out to -$20.75/t. Iron ore futures softened to close at $221.07/mt.
Oil futures dipped on the back of reopening of one of the largest pipelines in the US back from the cyberattack last week. WTI and Brent remained marginally unchanged at $64.90/bl and $68.32/bl. Precious metals were mixed, gold edged lower to $1,834.90/oz, while silver consolidated to $27.53/oz.
All price data is from 11.05.2021 as of 17:30