US stocks fluctuated yesterday, as economic reports stressed the potential impact of rising inflationary measures. Indeed, US home sales fell more than forecast in April, as higher purchase costs kept the consumers at bay; home sales prices surged the most since 2005. Likewise, consumer confidence dropped, for the first time this year, to 117.2 in April due to the impacts of elevated unemployment levels as well as inflation. The University of Michigan survey showed that consumers expect a 4.6% increase in inflation over the next year, the highest reading in a decade. However, the Fed officials pushed back against the threat of rising prices will continue as the economy reopens. The dollar fluctuated, and the 10yr US Treasury yield softened into a 2-week low of 1.5774%.
LME metals were mostly softer, only with zinc and lead closing higher on the day. Copper was subject to moderate selling pressure, testing the support level of $9,900/t and closing at $9,918/t. Aluminium prices were softer in the second half of the day, closing lower at $2,372/t. Nickel prices took back the previous day’s gains, closing lower at $17,040/t; cash to 3-month spread tightened to -$36.25/t. Zinc tested resistance at $2,985/t before closing lower at $2,982.50/t. Lead prices were more range-bound, closing marginally higher on the day at $2,158.50/t.
In line with stocks, oil futures fluctuated with Iran deal talks resuming. WTI and Brent gained ground to $66.2/bl and $68.63/bl. Precious metals were all seen higher, with gold and silver edging up to $1,892.70/oz and $27.91/oz, respectively.
All price data is from 25.05.2021 as of 17:30