US stocks closed the week on the front foot, but not enough to erase this week's losses. The ECB stated that it is putting together a crisis tool to deploy, given the raised bond yields; the euro did not respond to the news but the report highlights the key balance challenge for policymakers. The 10yr US Treasury yield gained further ground to 2.69%, as investors assessed the Fed's motive to reduce both the balance sheet as well as hike interest rates this year. The dollar index jumped higher to test the 100 level, the highest level since mid-2020. Elsewhere, to keep up with rising consumer prices, UK average salary for new permanent joiners climbed by most since 1997 in March, heightening the concerns surrounding the wage-price spiral.
This week's market moves have been subdued, and today's trading followed that trend, as the base metals gained marginal ground. Volume levels for copper and aluminium, while still remaining below the long-term average, have been seen recovering in recent days. The metals closed at $10,323.50/t and $3,374.50/t, respectively. Nickel closed higher at $33,855/t. Zinc saw the strongest gains, as it broke above yesterday's highs of $4,260/t to close at $4,254.50/t. Containers near Shanghai port continue to stack up as lockdown conditions alongside rigorous testing caused a shortage of trucks to pick up items from the ships. The backlog is likely to extend lead times even further, threatening more delays and increased shipping rates in the near term.
Oil futures steadied after three consecutive days of losses, with WTI and Brent trading at $97.25/bl and $101.50/bl. Precious metals were on the front foot, with gold and silver edging up to $1,942.61/oz and $24.68/oz, respectively.
For more in-depth analysis of base and precious metals, please see our Quarterly Metals report.
All price data is from 08.04.2022 as of 17:30
