US stocks edged higher as tech stocks drove the incline, with investors gauging the next steps from the Federal Reserve. US consumer sentiment rose once again in early August to a 3-month high on the back of firmer expectations of personal finances. Inflation expectations were mixed, with longer-term prices forecast to increase slightly to 3.0% over the next 5-10 years while reducing the 2023 outlook for costs at 5.0%. The dollar edged higher at 105, and the 10yr US Treasury yield softened slightly. UK economy shrank in Q2 for the first time since the pandemic after the decline in household spending, which suggest that the key component of GDP might continue to decline as inflationary expectations remain high.
The metals weakened strongly today on the back of Chinese credit data. China’s credit growth slowed sharply in July as the property market slump and weaker consumer demand weighed on the economy’s financing. This is despite the recent government support targeting households and businesses to ensure ample liquidity. Aluminium sold off, falling below the support level of $2,440/t to close at $2,434.50/t. Next in line was zinc, which weakened by 2.5%, still not enough to offset the recent losses; the metal closed at $3,589/t. Copper fluctuated but managed to settle lower at $8,097/t. Lead closed at $2,184/t.
Oil futures fell but still managed to close the week on the front foot, with WTI and Brent now at $92/bl and $98/bl. Precious metals wavered, with gold and silver trading at $1,795/oz and $20.54/oz, respectively.
For more in-depth analysis of base and precious metals, our Q3 2022 Quarterly Metals report is out now!
All price data is from 12.08.2022 as of 17:30