US stocks wavered as investors assessed the latest round of corporate earnings data against the monetary policy outlook from the Fed. The Fed’s minutes signalled that rate hikes would continue as the central bank aims to quell inflation. US continuing jobless claims fell by 2,000 in the week ending August 13th, the first decline in three weeks. Meanwhile. Philadelphia manufacturing gauge expanded to 6.2 in August, although the business measure sub-index remained weak. The US existing home sales fell for the sixth month straight in July, a continuation of this year’s trend of declines. The dollar edged higher to 107.20, and the 10yr US Treasury yield remained unchanged. The 2yr US Treasury yield remained high at 3.22%.
A day of moderate weakness on the LME market today, only with copper trading higher, but struggling to close above $8,000/t to $8,031.50/t. Zinc declined for the second day, falling back below the support level of $3,500/t and closing at $3,472.50. Lead declines were also strong as the metal fell into the close of $2,072.50/t. Aluminium and nickel struggled to gain footing, settling marginally unchanged at $2,403/t and $21,780/t, respectively. Iron ore futures struggled below the support level of $100/mt, as the metal closed at $101.76/mt. Recent weakness in stainless steel was driven in large by the growing decline in construction demand in China, which sees further diminishing financing from the private sector.
Oil futures gained footing for the second straight day following a positive US crude stockpile report. The WTI and Brent traded at $89/bl and $95/bl. Precious metals were once again marginally unchanged, with gold and silver at $1,759/oz and $19.63/oz, respectively.
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All price data is from 18.08.2022 as of 17:30