US stocks softened slightly today, after partially erasing earlier losses as the markets re-assessed global market conditions. The corporate earnings results for Q2 are expected to point slowing financial conditions with rising inflation and slowing consumer demand. The manufacturing data is mixed, with S&P Global advancing to 52.7 while the IHS gauge pointed to 53.0 from 56.2. The dollar keeps testing 105 while the 10yr US Treasury yield fell below the 3.00% level. Elsewhere, EU inflation came at a record high in June, growing by 8.6% y/y, exceeding expectations and putting additional pressure on the ECB as it aims to hike for the first time this month.
Recessionary worries grappled the markets today, causing the metals across the board to slip. While Chinese demand is slowly recovering, poor end-user consumption means that China is now in surplus for many base metals. Copper fell below the key support level of $8,000/t for the first time since February 2021; the market was bid below this level, and the metal closed at $8,048/t. Aluminium losses were much more moderate, as the metal closed at the $2,444/t level. Nickel opened lower on the day at $21,500/t, but support at that level triggered the metal to come back to close at $21,824t. Only lead was seen higher today, closing at $1,934.50/t; zinc closed at $3,029/t.
Oil futures gained footing as export supply concerns from Libya mount. WTI and Brent now trade at $107/bl and $110/bl. Gold fell below $1,800/oz for the first time since May after the number 2 consumer, India, increased its import taxes. Silver fell below $20.00/oz level to $19.84/oz.
For more in-depth analysis of base and precious metals, our Q2 2022 Quarterly Metals report is out now!
All price data is from 01.07.2022 as of 17:30