US stocks started the day on the back foot, jumping lower on the open, trading slightly higher during the day ahead of another week of corporate earnings results and central bank meetings. Dallas Manufacturing activity continued to fall lower in October, down to -19.4, as the sector felt the weight of the slowing economic outlook. Brazilian stocks gained a footing after Luiz Inacio Lula da Silva was elected to be President, winning over the incumbent Bolsonaro by a margin in a Sunday’s runoff. The dollar continued to recover back to 111.5, and the 10yr US Treasury yield edged higher. The euro declined following another month of record high inflation reading; CPI increased by 10.7% y/y, up from 10.0% in September, as energy prices drove the incline once again. Meanwhile, the GDP figure for Q3 slowed to 0.2% q/q – while more than markets were anticipating, less than the growth of 0.8% in Q2 2022. The markets are now anticipating a negative economic performance in the last quarter of the year as the energy crisis continues to weigh on households.
China’s economic data came in lower-than-expected over the weekend, with the manufacturing PMI falling to 49.2 in October, once again a contractionary level. At the same time, further lockdown measures were reintroduced in Wuhan and other regions in the nation’s industrial belt. Zinc responded sharply to this, falling by more than 4.0% during the day, down to close at $2,697/t, the March 2021 lows. Copper followed suit, falling to test the support level of $7,450/t before settling at $7,450/t. Nickel fluctuated but still managed to weaken into $21,809/t. Aluminium was the only metal settling higher on the day after the metal struggled below the support level of $2,190/t, edging back to $2,222/t.
Oil futures weakened on the back of weak Chinese data, with WTI and Brent falling to $86/bl and $94/bl; natural gas prices were also softer on warmer weather prospects in Europe. Gold and silver declined on the back of a stronger dollar, down to $1,638/oz and $19.14/oz, respectively.
For more in-depth analysis of base and precious metals, please see our Quarterly Metals report.
All price data is from 31.10.2022 as of 17:30