US stocks rebounded after reopening on Tuesday, led by energy and tech shares. The sentiment was supported by US President Biden's comments that the recession is not inevitable, but the outlook is set to deteriorate. However, US inflation is seen slowing, with a survey pointing to a growth of 6.5% by Q4 and 3.5% by the middle of next year, according to Bloomberg. Previously-owned home sales in the US fell for the fourth month straight in May, reaching the lowest level in nearly two years, highlighting the impact of high prices even on the secondary market. The dollar weakened, and the 10yr US Treasury yield settled at 3.28%.
Sentiment improved across base metals today, following last week’s rout. Lead was the only metal down today, falling down to close at $2,065.50/t. China imported 243,859mt of zinc ore and concentrate in May, down 26.24% m/m and 22.46% y/y, according to the General Administration of Customs. Aluminium strengthened after finding support at around $2,510/t before edging higher to close at $2,533.50/t. Copper followed suit as it strengthened into $8,995/t; cash to 3-month spread weakened into $7.00/t. Zinc shot up higher, but resistance at $3,620/t triggered a close at $3,592/t. Nickel closed at $25,949/t.
Oil futures climbed higher as the markets weighed on the prospects of global demand. WTI and Brent traded at $110/bl and $114/bl. Precious metals softened as markets weighed on the prospects of further rate hikes by central banks; gold and silver edged higher to $1,834.45/oz and $21.75/oz, respectively.
For more in-depth analysis of base and precious metals, our Q2 2022 Quarterly Metals report is out now!
All price data is from 21.06.2022 as of 17:30
