US closed the week on the front foot, with S&P gaining footing for the third straight day. Macroeconomic data was mixed today. US consumer sentiment deteriorated further in May, falling to a decade low as escalating concerns surrounding inflation overshadowed the economic outlook. Meanwhile, inflation-adjusted consumer spending rose by the most in 3 months in April, highlighting the resilience of an American consumer despite deteriorating consumer confidence about the outlook. Both dollar and the 10yr US Treasury yield remained broadly unchanged.
Base metals complex advanced today on the back of signs of improved lending conditions from China. The country is said to allow foreign investors to trade bonds on its exchange to allow capital inflows. Nickel saw the strongest gains, closing higher at $28,284/t. Next in line was zinc, which broke the robust moving average level of $3,833/t to close at $3,843.50/t. Aluminium and copper were also on the front foot, closing higher at $2,871.50/t and $9,459/t, respectively. Iron ore futures found support at $125/mt to climb higher and close at $133.07/mt; the metal continued to edge higher in Monday’s session.
Oil futures fluctuated amid thin trading volumes, with WTI and Brent at $114/bl and $118/bl. Precious metals strengthened following the lesser-than-expected impact of inflation on expenditure. Gold and silver traded at $1,854/oz and $22.07/oz, respectively.
For more in-depth analysis of base and precious metals, please see our Quarterly Metals report.
All price data is from 27.05.2022 as of 17:30
