US stocks fluctuated following the slew of macroeconomic data coming out today, driving the sentiment behind Fed-pivot pricing from the markets. US GDP figure came above expectations, at 2.6%, vs the previous figure of -0.6% q/q. Likewise, personal spending grew by 1.4%, suggesting a healthy, albeit slowing, pace of consumer strength. Initial jobless claims increased by 217,000 in the week ending October 22nd, once again highlighting the resilience of the US labour market. The only figure that has disappointed to the downside was the durables goods orders (ex. Transportation), falling by 0.5% as most sectors, excluding auto orders, declined. The dollar found support at 110 while the 10yr US Treasury yield continued to fall below 4.0%. The European bond markets have also responded sharply, with Germany’s 10yr Bund yield selling off below 2.0% after the ECB hiked rates by 75bps, as the central bank continues to make progress fighting inflation.
The metals declined mostly during the day, with the selloffs driven mostly by euro moves rather than US economic data. The prices tried to recover following the sharp corrections during the day, but the gains were marginal, and most metals settled lower on the day. Aluminium fell below the $2,300/t level, testing the support at $2,280/t before settling slightly higher at $2,287.50/t. The first half of the day drove the copper below the $7,700/t level before regaining most of the losses later back to $7,764.50/t. Nickel fluctuated between gains and losses, testing yesterday’s resistance at $22,600/t and closing at $22,384/t. Lead fell to close at $1,865/t; zinc was the only metal to close marginally higher on the day at $2,942/t.
Oil futures regained most of the earlier losses after the US GDP figure, easing concerns over demand. WTI and Brent now trade at $89/bl and $97/bl. Meanwhile, gold and silver softened slightly on marginal dollar strength, settling at $1,665/oz and $19.60/oz, respectively.
For more in-depth analysis of base and precious metals, please see our Quarterly Metals report.
All price data is from 27.10.2022 as of 17:30