US stocks fluctuated yesterday ahead of the Q3 financial results releases. US consumer inflation expectations continued to rise in September, up to 5.3% one year from now. US job openings declined in August, the first monthly decline this year, as demand for labour fluctuated. The dollar strengthened and the 10yr US Treasury yield lost ground for the first time in four sessions. Meanwhile, UK payrolls rose to above pre-pandemic levels in September, with vacancies rising to all-time highs. Globally, the IMF has lowered their global recovery outlook, with expected growth of 5.9% in 2021. Material shortages continue to weigh on market outlook, highlighted by German investor confidence falling for the fifth straight month in October.
Metals on the LME were mixed yesterday, with copper and lead down on the day. Aluminium was supported above $3,010/t, closing before the resistance level of $3,115/t at $3,068/t. Nickel fluctuated throughout the day, but closed marginally higher at $18,978/t. Zinc gained ground in the second half of the day, testing resistance at $3,276/t before closing at $3,263/t; cash to 3-month spread strengthened into $0.60/t. Copper managed to recoup morning losses, but still struggled to close higher; close at $9,465/t. Likewise, lead sold off in the latter part of the sessions, closing at $2,211.50/t.
Oil futures held the nerve, with WTI above $80/bl, on continued expectations of elevated demand this winter season. Brent traded at $83.37/bl. Precious metals were mixed, with gold and silver trading marginally higher to $1,763.83/oz and $22.59/oz, respectively.
For more in-depth analysis of base and precious metals, please see our Quarterly Metals report.
All price data is from 12.10.2021 as of 17:30