US stocks rose ahead of corporate earnings reports from the big tech firms yesterday. The Fed Chair Powell stated that inflationary pressure could prevail for longer but urged to remain patient on interest rate changes; the 10yr Treasury yield lost ground to 1.63%, the dollar strengthened. Secretary Yellen said she expected price pressures to remain elevated through H1 2022. German business confidence has fallen to the lowest level in half a year, as the manufacturing sector continues to suffer. Meanwhile, the Turkish lira tumbled after President Erdogan escalated tensions with the US and other foreign governments.
Base metals on the LME started the week on the front foot, as most of the complex experienced moderate gains during the day. Copper prices were well supported and tested resistance at $9,900/t; prices closed lower at $9,867.50/t. Lead was well bid in the second half of the day, testing the resistance level of $2,450/t before closing below at $2,438.50/t; the cash to 3-month spread widened out to $31.25/t. Nickel advanced, following the previous day slump, supporting prices above $20,000/t, the metal closed at $20,306/t. Aluminium prices declined but still managed to close marginally above Friday’s close at $2,875.50/t. SHFE aluminium prices also weakened, closing at CNY721,476/mt; the next day, prices continued their decline to CNY21,200/mt. Zinc prices remained marginally unchanged, closing at $3,459.50/t.
Oil futures edged higher after Saudi Arabia’s statement that the OPEC+ should maintain a cautious approach to managing supplies. WTI and Brent traded at $83.98/bl and $85.99/bl. Precious metals were also marginally stronger, with gold and silver increasing up to $1,808.18/oz and $24.54/oz.
For more in-depth analysis of base and precious metals, please see our Quarterly Metals report.
All price data is from 25.10.2021 as of 17:30