US stocks edged higher after seeing a sharp contraction earlier yesterday, as investors assessed disappointing corporate earnings results. US unemployment cost index, a wage gauge, grew by 1.3% q/q, the record growth, as employers raised wages amid labour shortages. US consumer sentiment, however, continued to fall as rising inflationary pressures cap consumer outlook. The dollar rallied and the 10yr US Treasury yield softened. The euro markets improved after the data pointed to faster-growing GDP in Q3 and, likewise, inflation, with the latter growing above market expectations at 4.1% y/y.
Metals on the LME were mixed yesterday, with some marginal gains and losses seen throughout the day. Aluminium was softer, falling to test the $2,665/t level before closing higher at $2,716.50/t. Copper prices deteriorated in the second half of the day, prompting a close near the day’s lows at $9,496/t. Chile posted another negative copper production performance this month, the worst decline since February. Lead closed lower at $2,384/t. Nickel was moderately unchanged during the day, but remained supported above $19,200/t, closing at $19,448/t; the cash to 3-month spread strengthened marginally to $108/t. Tin and zinc gained ground, closing at $36,888/t and $3,378.50/t, respectively.
Oil moderated yesterday, with WTI and Brent trading around $83.10/bl and $84.40/bl. Precious metals were all softer, with gold and silver down to $1,778.19/oz and $23.88/oz, respectively.
For more in-depth analysis of base and precious metals, please see our Quarterly Metals report.
All price data is from 29.10.2021 as of 17:30
