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US stocks closed the week on a better note, recovering marginally today after the Fed’s Powell reassured the markets that big rate hikes are off the table. S&P still closed 7% lower in the last two weeks, as the sentiment remained fragile. Indeed, bets of a US recession within the next year are rising, with the probability rising to 30%, according to Bloomberg, the highest level since 2020, as the central bank battles with inflationary pressures. The dollar softened marginally but remained elevated above 104.50, and the 10yr US Treasury yield gained ground for the first time in four days.

A round of mixed metals’ performance on the LME today, as volatility cooled following a turbulent week. Aluminium caught a bit following the continued deterioration of inventory levels, as the on-warrant LME levels breached record lows of 307,000; the metal edged higher to close at $2,788/t. Copper was also seen higher, closing at $9,159/t. Nickel continued to decline, falling below the support level of $27,400/t to $27,262/t, bringing it closer to the ranges traded before the squeeze in March. Lead and zinc softened, closing lower at $2,059/t and $3,489.50/t, respectively.

Oil futures continued to edge higher on the back of tight fundamentals, with WTI and Brent both trading at $110/bl. Diesel exports out of Russia fell sharply in April but below market expectations, suggesting that oil exports still find their way out of Russia. Precious metals were mixed; gold and silver traded at $1,809/oz and $20.97/oz, respectively.

For more in-depth analysis of base and precious metals, please see our Quarterly Metals report.

All price data is from 13.05.2022 as of 17:30

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