U.S. stocks are marginally softer at the time of writing ahead of options expiry tomorrow. We expect equities to be bid following this week. Initial jobless claims in the U.S. were 268,000, with continuing claims coming under expectations at 2.08m. The Philadelphia Fed Business Outlook reached 39, up from 23.8 the previous month in October. The dollar has weakened after failing above 96; the U.S. 10yr yield has weakened to 1.5786%. The dollar and bond yields could struggle if inflation moderates as real yields remain near record lows.
Metals prices were mixed today, and copper prices consolidated as the market continues to find a base following the physical tightness we have seen in the last month. Copper closed at $9,441.5/t, with the cash to 3-month at $14.90/t back. Nickel gained the most ground reaching $19,845/t before closing at $19,639/t. Aluminium recovered from early losses and closed at $2,616/t. Lead and zinc were weaker, closing at $2,215/t and $3,159/t, respectively, with the zinc cash to 3-month spread at $37.50/t back.
Energy prices consolidated today as prices edged higher, but reports around China releasing oil reserves suggest it is only a matter of time. However, if the metals market is anything to go by, they may surprise to the downside. Brent and WTI trade at $80.74/bl and $78.50/1/bl, respectively. Precious metals consolidated.
All price data is from 18.11.2021 as of 17:30
