US stocks showed resistance to the recent sell-off once again, bouncing higher ahead of the Fed meeting where the officials have stated their willingness to accelerate the unwinding of pandemic stimulus and to plan for their first hike to take place in March. In December, US new home sales jumped to a nine-month high as firmer demand for houses continued to deplete inventories. In the meantime, the merchandise-trade deficit widened unexpectedly in December, as imports continued to rise. The dollar and the 10yr US Treasury yield edged higher. Elsewhere, Chinese government spending rose by 0.3% y/y the slowest pace in nearly 20 years in 2021, most likely driven by tight fiscal conditions in the second half of the year.
Metals prices firmed as risk appetite returned ahead of the Fed. Tin was well bid to $42,208/t and has been bid after the close at $42,208/t. Zinc was firm again and closed above $3,610/t at $3,610/t, with the cash to 3-month spread at $19.25/t. Copper prices firmed as well, closing at $9,916.50/t. Aluminium prices consolidated today, with the market focusing on the Fed; the metal closed at $3,094/t. Only lead was lower on the day, closing at $2,322/t.
Oil futures continued to advance on the back robust demand outlook, with WTI and Brent growing to $87.45/bl and $90.05/bl. Gold and silver softened, falling down to $1,832.85/oz and $23.77/oz, respectively.
For more in-depth analysis of base and precious metals, please see our Quarterly Metals report.
All price data is from 26.01.2022 as of 17:30
