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US stocks edged higher on Friday on the back of positive retail sales data. US retail sales increased by 0.7% m/m in September, despite production constraints limiting the supply side. We attribute it to a continued stock of goods being sold into the market, and supply chain constraints are more likely to weigh on demand in the coming months. US consumer sentiment, however, fell to 2011 levels in October, as markets grew more concerned about the outlook. The dollar was lacklustre, and the 10yr US Treasury yield strengthened for the first time in four sessions back to 1.5720%.

Metals on the LME continued to break higher. Another strong rally from zinc that gained as much as 12% during the day, now at June 2007 highs of $3,944/t closing at $3,794.50/t. Copper extended its gains beyond $10,000/t towards $10,300/t closing below at $10,281.t; cash to 3-month spread shot up even further to $257/t. Nickel pierced key resistance of $20,000/t and closed higher at $20,020/t. Aluminium strengthened in the second half of the day towards $3,200/t but lacked the appetite to break through the level and closed at 3,171.50/t.

Likewise, oil futures consolidated, with Brent now above $85/bl. WTI traded at $82.15/bl. Precious metals fell on the back of positive economic data coming out of the US, with gold and silver falling down to $1,767.85/oz and $23.33/oz, respectively.

For more in-depth analysis of base and precious metals, please see our Quarterly Metals report.

All price data is from 15.10.2021 as of 17:30


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