US stocks fell today as markets are bracing for a slew of corporate earnings results in the coming weeks and gauge the impact the hawkish Fed and elevated inflation might have had on company performance. The IMF further soured the sentiment by warning of a worsening outlook as central banks continue to fight inflationary pressures; the agency cut its outlook for global growth to 2.7%, the fourth consecutive downgrade. The 10yr US Treasury yield softened after testing 4.00% once again; the dollar edged lower. The 2yr yield tested resistance at 4.30% before softening slightly. Meanwhile, the BOE has said that it will expand the scope of its bond purchases to include inflation-linked debt to ensure financial stability in the markets. At the same time, the data pointed out that the UK labour market remains robust, with the unemployment level falling to the lowest since 1974, at 3.5%.
The sentiment was little changed today, with the base metals complex posting mixed results. Aluminium struggled above $2,260/t today and softened slightly into $2,236/t. Likewise, nickel gained momentum in the first half of the day before resistance at $22,564/t urged the metal to weaken back to $22,079/t. Zinc closed lower at $2,928.50/t. Copper prices remained broadly unchanged but managed to settle marginally higher day-on-day at $7,583/t. Lead found strength later on in the day to close at $2,015.50/t.
Oil futures declined today as global slowdown fears intensified, and both the WTI and Brent softened into $89/bl and $94/bl, respectively. Gold and silver diverged, with gold settling marginally higher at $1,678/oz; silver was at $19.52/oz.
For more in-depth analysis of base and precious metals, our Q3 2022 Quarterly Metals report is out now!
All price data is from 11.10.2022 as of 17:30