Momentum slowed on the US stock market, as the investor sentiment cooled. US initial jobless claims climbed to 419,000 in the week edging 17 July, an unexpected, but moderate increase. US mortgage rates fell to 2.78%, the lowest since February, following the falling Treasury yields. On the other hand, US existing home sales rose for the first time in five months as housing inventory improved. The dollar rebounded later in the day and the 10yr US Treasury yield softened. Elsewhere, the ECB revised its guidance on the date of when the interest rates might be raised, stating it will not withdraw support too quickly and stifle economic growth.
LME metal prices were on the front foot today as stocks retreated. Aluminium prices tested $2,490/t in the second half of the day and closed just off the highs at $2,483/t. Copper was well bid, breaking above the resistance level of $9,450/t, before closing lower at $9,411.50/t. Nickel trended higher, closing at $18,922/t; cash to 3m spread tightened up to -$8.50/t. Zinc and lead consolidated, closing at $2,938.50/t and $2,399.50/t respectively.
Oil futures edged up with expectations of recovering demand globally. WTI and Brent strengthened into $71.11/bl and $73.02/bl. Precious metals were also seen higher, with gold and silver edging up to $1,806.30/oz and $25.34/oz, respectively.
All price data is from 22.07.2021 as of 17:30
