US stocks fluctuated on Friday on the back of mixed economic data. US payrolls came at 194,000 in September, less than half of what was forecasted and the smallest advancement of 2021. The unemployment rate continued to fall, down to 4.8%. However, it is believed by the markets that this report will not deter from enacting the bond purchases tapering in November. The dollar weakened, and the 10yr US Treasury yield continued to pare gains to 1.6048%, the June highs.
Metals on the LME extended their advance yesterday amid a weaker dollar; most of the rally has taken place in the first hours of the day, as Chinese markets have reopened after a week of national holidays. Nickel posted the biggest daily gain, up 5.02%, and closing at $19,221/t. Zinc prices were firmer, breaking above $9,300/t to close at $3,151/t; cash to 3-month spread tightened to -$6.50/t. Aluminium prices tested the $2,989/t resistance level and closed at $2,966/t. Copper was also on the front foot, trading to $9,390/t and closing at the day’s high at $9,361/t. Lead prices firmed in the second half of the day, testing $2,230/t to close at $2,221/t. Iron ore prices were up on the day, closing at $127.30/mt.
Oil futures surged to November 2014 highs as energy crisis worries spiked once again. WTI topped $80/bl, while Brent traded around $82.87/bl. Precious metals were higher, with gold and silver only marginally higher on the day, up to $1,758.60/oz and $22.75/oz, respectively.
For more in-depth analysis of base and precious metals, please see our Quarterly Metals report.
All price data is from 08.10.2021 as of 17:30
