US stocks wavered as the markets assessed the inflation data coming from the US. CPI came at 7.0% y/y in December, a 1982 high, but slower growth month-on-month. The core inflation reading was 5.5% y/y and accelerated month on month. We anticipate that this was due to a continued increase in used vehicle sales that continues to beat historic highs, as food and energy price pressures grew at a slower rate. Meanwhile, China’s producer prices rose by 10.3% y/y, down from a 12.9% reading in November, a sign of moderating inflationary pressures. The dollar softened, and the 10yr US Treasury yield continued to weaken, reinforcing the anticipating of a high inflation figure.
Metals prices were on the front foot again today; protracted buying pressure caused copper to break above $10,000/t once again as investors looked to commodities as inflationary pressures rise; the metal closed at $10,064/t. Nickel was more range-bound, supported above $21,800/t, as it closed at $22,064/t. Aluminium tested resistance at $3,020/t but closed lower on the day at $2,982.50/t. Zinc also closed lower at $3,552/t.
Oil futures gained ground once again as US crude stockpiles dropped to 2018 lows. WTI and Brent grew to $82.88/bl and $85.00/bl. Precious metals shot up after the inflation figure release, with gold and silver now trading at $1,824.59/oz and $23.13/oz, respectively.
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All price data is from 12.01.2022 as of 17:30