US stocks rose after it became likely that the US government will not shut down. US jobless claims rose for the third straight week, raising concerns over the recovery of the labour market. Mortgage rates jumped above 3% once again, the level previous breached in July. Likewise, US rents pointed to an 11.5% y/y jump in August. The dollar softened after five consecutive days of gains, and the 10yr US Treasury yield held its ground at 1.54%. Elsewhere, German CPI rose at the fastest rate in nearly 30 years, as Europe is seen following the same trajectory as the US, with a lag driven by later reopening of the economy.
Another negative day on the LME market. Copper prices softened to test appetite below $8,950/t but struggled below that level, triggering a close at $8,936.50/t. Aluminium was also down on the day, closing at the day’s lows at $2,858.50/t; cash to 3-month spread tightened up to -$16.90/t. Nickel remained under pressure, closing at $17,936/t. Zinc tested the $2,983/t level and closed higher at $2,988/t.
Oil futures slid yesterday ahead of the OPEC+ meeting next week, where the focus will be on whether the producers will increase the output to alleviate some of the supply crunch pressures. WTI and Brent managed to recoup some of the losses closer to the day-end to trade at $75.10/bl and $78.44/bl. Precious metals strengthened, with gold and silver edging up to $1,762.84/oz and $22.16/oz, respectively.
For more in-depth analysis of base and precious metals, please see our Quarterly Metals report.
All price data is from 29.09.2021 as of 17:30