US stocks saw another day of moderate gains on the back of optimism that the impact of omicron spread on the economy will be limited. US consumer sentiment picked up in December, another sign that consumers remain positive about the outlook. Durable goods sales beat forecasts, growing by 2.5% m/m in November. PCE deflator, the Fed’s gauge of inflationary pressures, continued to rise, in line with market expectations; however, spending stagnated as high prices eroded some of consumers’ purchasing power. The dollar and the 10yr US Treasury yield both edged higher.
Europe’s energy crisis continues to deepen, with some nations, such as Serbia, facing power cuts to cut down on costs. As a result, aluminium continued to see moderate gains after this week’s rally, trading above $2,820/t; the metal close at $2,846/t. Other metals in the complex were mixed. Zinc softened after finding resistance at $3,557.50/t, closing at $3,527/t. Nickel was supported above $20,000/t and closed higher at $20,021/t. Copper was mixed, closing marginally unchanged at $9,612/t; cash to 3-month spread weakened into $26.00/t
Oil futures steadied as markets assessed the balancing impacts of continued decline in crude stocks and the near term impact of omicron spread on consuming nations. WTI and Brent edged up to $73.48/bl and $76.14/bl. Precious metals gained ground, with palladium seeing another day of steep inclines; gold and silver were more moderate, trading at $1,807.50/oz and $22.88/oz, respectively.
For more in-depth analysis of base and precious metals, please see our Quarterly Metals report.
All price data is from 23.12.2021 as of 17:30