US stocks declined today, with S&P falling for the second straight day, as markets brace for the Fed next week’s meeting. The US 2yr yields continued to rise, reaching the highest level since 2007, 3.88%, further deepening the curve inversion, highlighting growing recessionary fears. The University of Michigan survey showed the long-term inflation expectation, falling to the lowest level in more than a year in September, with consumer expecting prices to grow by 2.8% over the next 5-10 years. The dollar remained unchanged and the 10yr US Treasury yield retested 3.50%. Meanwhile, the pound fell to the lowest level against the dollar since 1985.
China’s fiscal deficit widened to another record in first eight month as covid outbreaks added to the spending taken up by the government to support the economy. At the same time, Chinese economy showed signs of moderate recovery in August, as Beijing rolled out stimulus measures to counter economic slowdown; industrial production, retail sales and fixed-asset investment all grew more than markets anticipated and the unemployment rate fell from a record high. The markets did not respond strongly to this data and so saw another day of mixed price performance. Nickel recovered yesterday’s losses as it edged back to $24,249/t. Copper gains were marginal as the metal settled at $7,762/t. Aluminium declined on the news of growing production form China; the metal edged lower to $2,277/t. Both lead and zinc settled lower at $1,889/t and $3,153.50/t, respectively.
Oil futures closed the third straight week declining, as demand outlook in China soured amid tougher lockdown restrictions. WTI and Brent are now at $85/bl and $91/bl. Gold and silver gained ground in the second half of the day to $1,673/oz and $19.35/oz, respectively.
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All price data is from 16.09.2022 as of 17:30