US stocks climbed following the US CPI data yesterday that pointed out softening inflationary pressures month-on-month. However, the Federal Reserve said that this does not warrant the halt of further interest rate hikes, and some policymakers see interest rates reaching as high as 3.9% by the end of this year. Swaps point to forecasts of a 50bps hike by the Fed in September. US PPI followed the trend after the price fell by 0.5% m/m unexpectedly in July, for the first time in two years, a reflection of softer energy costs. From the labour market, US initial jobless claims rose for the second week straight, holding the highest level since November, which could be a sign of potential softening in employment figures. The dollar dropped for the fourth straight day, and the 10yr US Treasury yield settled at 2.83%.
Metals on the LME led the upside momentum today as markets responded to yesterday’s CPI data. Copper jumped higher on the open, up to $8,160/t before trading slightly higher to close at $8,173/t. Likewise, nickel gained more than 6% up to $23,659/t. Aluminium gained footing, but resistance at $2,522/t capped the metal to come down to $2,520.50/t. Lead and zinc closed at $2,199/t and $3,686.50/t, respectively.
Oil futures advanced after IEA increased its demand forecast for global growth in 2022, lifting its consumption number by 380,000 bl/d. WTI and Brent traded at $93/bl and $98/bl. Gold wavered following the softness in the dollar, trading $1,791/oz; silver was at $20.38/oz.
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All price data is from 11.08.2022 as of 17:30