US stocks breached fresh record highs supported by continued positive corporate earnings results performance. US economy grew by 2.0% q/q annualised in Q3, down from 6.7% in the previous quarter; the consumption expenditures price index slowed to 4.5% but remained above market expectations. US initial jobless claims continued to fall, now near the mid-March 2020 lows of 281,000. The dollar sold off, and the 10yr Treasury yield gained ground. The euro gained ground after the ECB’s statement that inflation might remain higher for longer, with interest rates remaining unchanged and the bond-buying programme to continue at a moderately slower pace. In the meantime, the bloc’s biggest economy, Germany, suffered another month of high inflationary costs, with CPI growing by 4.6% y/y, driven by high energy prices.
Metals on the LME managed to recoup some of the previous day’s losses. Copper strengthened after finding support at $9,500/t once again, closing higher at $9,666.50/t. Likewise, the SHFE copper contract consolidated to close at CNY70,353/mt; the next day trading continued to fluctuate around that level. Aluminium softened in the first half of the day, finding support at $2,500/t before picking up sharply, recovering nearly half of Wednesday’s losses; the metal closed at $2,746.50/t. Nickel remained supported above the $19,400/t support level, closing at $19,574/t. Zinc wavered but managed to close higher on the day at $3,372/t; cash to 3-month spread tightened up to $58.00/t, December 2019 highs.
Oil futures were moderately softer after the OPEC+ statement expecting a tighter market in the last quarter of the year. WTI and Brent traded at $81.86/bl and $83.50/bl. Precious metals remained broadly unchanged day-on-day.
For more in-depth analysis of base and precious metals, please see our Quarterly Metals report.
All price data is from 28.10.2021 as of 17:30
