US stocks rose higher, with S&P 500 continuing to break record highs on the back of another day of positive corporate earnings results. US consumer sentiment picked up in October, the first time in four months, as the economy rebounded from the rise in COVID-19 cases in September. US home sales increased to a 6-month high in September, highlighting strong consumer demand. The dollar steadied, and the 10yr US Treasury yield held its ground at 1.63%. Meanwhile, China’s overnight repo rate declined to lows last seen in September and May 2021, after the central bank continued to pump liquidity into the banking system. Globally, automotive sector is likely to continue to correct, as, according to the EU Automobile Manufacturers Association, global chip shortages are forecast to persist into 2022, further confirming the severity of supply-side disruptions.
Price softness prevailed during the day on the LME market yesterday, as the complex closed lower on the day. Copper was subject to moderate selling pressure, testing the support level of $9,750/t and closing at $9,788.50/t; cash to 3-month widened out to $167/t. Aluminium prices were softer for most of the day, closing lower at $2,829/t. Nickel attempted to hold the previous day’s gains, however, sold off in the second half of the day at $20,091/t. Zinc saw the strongest losses, as it fell to test support at $3,386/t before closing higher at $3,425/t. Lead prices were more range-bound, closing marginally lower on the day at $2,422.50/t.
Oil futures edged higher, fluctuating around recent highs, as investors await the US crude inventories release. WTI and Brent traded $84.55/bl and $86.33/bl. Precious metals were all softer, with the industrial-focused metals, such as silver and platinum, experiencing a sharp correction. Gold and silver were down to $1,789.95/oz and $24.01/oz, respectively.
For more in-depth analysis of base and precious metals, please see our Quarterly Metals report.
All price data is from 26.10.2021 as of 17:30
