US stocks declined today after the market priced in US data, but the focus remained on the Russia-Ukraine crisis. US inflation high a 40-year high of 7.9% in February, which was in line with market expectations, driven in large by rising oil prices. The mortgage rate rose for the first time in 3 weeks, climbing up to 3.85%, but the short-term outlook is bound to be more volatile. The dollar was broadly unchanged, and the 10yr US Treasury yield found the strength to break above 2.0%. Elsewhere, ECB unexpectedly accelerated the wind-down of monetary stimulus, a sign that policymakers are more concerned about rising inflationary pressures than current geopolitical tensions.
Another mixed day on the LME markets today, as markets continued to assess the situation in Ukraine. Aluminium jumped by 7% to test $3,550/t after Rio Tinto stated it plans to stop supplying bauxite and sourcing alumina from Russian-owned refineries. The metal has softened since then and closed at $3,427.50/t. Copper edged marginally higher to $10,150/t, but not enough to break yesterday’s highs, closing at $10,117; cash to 3-month tightened marginally into -$29.00/t. LME nickel trading is still halted. Meanwhile, the SHFE nickel contract fell by 17% after trading resumed following a one-day halt. Lead and zinc continued their decline to close at $2,356/t and $3,863/t, respectively.
Oil futures gained ground, with WTI and Brent trading up to $109.25/bl and $112.26/bl. Precious metals fluctuated, with gold and silver edging marginally higher to $1,996.70/oz and $25.91/oz, respectively.
For more in-depth analysis of base and precious metals, please see our Quarterly Metals report.
All price data is from 10.03.2022 as of 17:30
