US stocks held their nerve after the worst sell-off since March 2020. IHS US manufacturing PMI grew at the fastest pace in four months, supported by robust demand and manufacturers working through the existing backlog. US consent sentiment has also improved, edging higher in late September, though it still remained historically low. The PCE index has grown by 4.3% y/y in August, the biggest increase since 1991. The dollar softened, and the 10yr US Treasury yield fell for the fourth day in a row. Elsewhere, Euro area inflation surged by 3.4% y/y, a 13-year high.
The metals on the LME recouped most of the previous sessions’ losses, only with aluminium and zinc closing marginally lower on the day. Copper prices were well supported above $8,900/t and tested resistance at $9,140/t and closed lower at $9,128/t. Nickel was well bid in the second half of the day, testing the resistance level of $18,120/t, and closed lower at $17,971/t. Lead prices remained supported above $2,100/t before closing at $2,982.50/t; the cash to 3-month spread tightened to $40.00/t. Aluminium softened during the closing at $2,857/t. Likewise, zinc was marginally unchanged as it struggled above $3,020/t and closed at $2,982.50/t.
Oil fluctuated but still finished the week on the front foot on Friday, ahead of the OPEC meeting. WTI and Brent gained ground into $75.19/bl and $78.58/bl. Precious metals were all higher on the day, silver rallied into $22.54/oz, and gold was at $1,761.54/oz.
For more in-depth analysis of base and precious metals, please see our Quarterly Metals report.
All price data is from 01.10.2021 as of 17:30
