US stocks declined after mixed economic data was released today. US jobs growth yielded the smallest gain this year, growing by less than half compared to the median estimate; however, the labour force participation continued to edge higher. Nevertheless, while it is unlikely to impact the Fed’s tapering plans, it should add volatility to the upcoming meetings assessing the speed of the reduction in bond purchases. US service industry rose to 69.1 in November, a record high, as consumer demand strengthened business activity. The dollar fluctuated, and the US Treasury curve continued to flatten, on the back of the belief that the Fed’s plans are to remain intact.
Metals prices continued to consolidate yesterday, trading remains quiet, but lead was the largest mover, falling below the support level of $2,220/t to close at $2,210.50/t. Aluminium recovered some of the previous day’s losses, closing marginally higher on the day at $2,623/t; cash to 3-month spread tightened into $15.25/t. Nickel tested the resistance of $20,400/t in the first half of the day before closing near the day’s lows at $20,030/t. Zinc was seen higher on the day, closing at $3,161.50/t. Copper weakened, closing above the support of $9,400/t at $9,418/t.
Oil futures rose amid weaker stocks and the dollar. WTI and Brent gained ground to $67.91/bl and $71.45/bl. Precious metals were mixed, as gold found footing around $1,770/t while silver declined to $22.35/oz.
For more in-depth analysis of base and precious metals, please see our Quarterly Metals report.
All price data is from 01.12.2021 as of 17:30