US stocks declined today as investors turned their attention to the general trend of monetary policy tightening this year. According to NY Fed President Williams, raising interest rates by half-percentage point is a reasonable option. US Mortgage rates hit 5% for the first time since 2011, as they track the performance of 10yr US Treasuries, adding further pressures on potential homebuyers. US consumer confidence shot up to a 3-month high, beating expectations after a rebound in labour market conditions and rising wages offset the growing inflationary pressures. Additionally, US retail sales picked up in March, up by 0.5% m/m, supported by rising gas station receipts. The dollar rallied in the latter half of the day, and the 10yr US Treasury yield tested resistance at 2.80%. Meanwhile, the euro slipped to the lowest level vs the dollar since May 2020 after the ECB stated that the war in Ukraine increased the prospects of further inflation acceleration; the policymakers also stated that the next meeting in June would provide clearer signals on monetary policy pullback.
Another mixed day of the performance on the LME, with gains driven in large by PBoC’s statement to use the policy toolbox flexibly to ensure liquidity while also confirming the use of RRR at the appropriate time. Metals like aluminium and nickel increased to close at $3,285.50/t and $33,175/t, respectively. Copper was more range-bound, closing at $10,315/t. Lead and zinc closed at $2,435/t and $4,412/t, respectively.
Oil futures edged lower on the day, with WTI and Brent trading at $104.08/bl and $108.64/bl. Precious metals were also seen lower, with gold and silver softening into $1,969.15/oz and $25.44/o, respectively.
For more in-depth analysis of base and precious metals, please see our Quarterly Metals report.
All price data is from 14.04.2022 as of 17:30