US stocks reversed after the previous day’s gains, as attention once again turned to the bond market, where the 10yr US Treasury yield jumped back above 2.47%. The dollar struggled to gain footing above yesterday’s high. Despite today’s weakness, the shares are set to close the second consecutive week on the front foot. The latest comment from the NY Fed President pointed to policymakers paying close attention to upcoming data as the basis for the next rate hike, which could be as high as 50bps in May. Elsewhere, UK consumer confidence fell to the lowest level since November 2020, driven by rising inflationary pressures, a trend we have seen affect the US and Europe.
A calmer picture on the LME exchange as the volatility subsided today. Nickel declined by 5% on the day, the first time in two days that the metal traded within the exchange limits, edging lower to close at $35,491/t, with the volume levels falling considerably for the fourth straight day. Aluminium and copper saw another day of marginal declines, as they softened to close at $3,605/t and $10,267/t, respectively. Lead and zinc were the only metals closing higher on the day, with the former breaching resistance of $2,350/t to close at $2,350.50/t. SGX futures breaches the $150/mt level today as the longer-term recovery in demand outlook continued to support the metal from the downside, despite the economy experiencing the worst outbreak since the start of the pandemic.
Oil futures softened in the first half of the day, driven in large by the news of another round of oil reserve releases from the US to help alleviate market tightness. This weakness, however, reversed later on reports of a Saudi Aramco site strike, causing WTI and Brent futures to trade at $113.69/bl and $120.81/bl. Moreover, the US and Europe struck a deal in which America will boost its supply of LNG to the bloc by the end of this year to help reduce the dependence on Russian exports. Gold and silver were marginally unchanged.
For more in-depth analysis of base and precious metals, please see our Quarterly Metals report.
All price data is from 25.03.2022 as of 17:30