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US stocks’ weakness slowed today ahead of the jobs data, following yesterday’s sell-off driven by the fears of a looming recession in the face of further hiking from the Federal Reserve. The markets are now pricing in a peak of 5.1% in May/June 2023. At the same time, mortgage rates for 30-year loans have pulled back below 7.0%. The US service gauge continued to cool to 54.4 in October; while expansionary, is at May 2020 low. US initial jobless claims fell slightly to 217k in the week ending October 29th, another sign of a tight labour market and the overheating job market Jerome Powell mentioned during the rate meeting. The dollar and the 10yr US Treasury yield both strengthened. Meanwhile, the ECB’s Lagarde warned that a mild recession is possible but that it would not be sufficient in itself to quell the price growth. The pound fell as the BOE told the markets to rain in their expectation for hikes after hiking the key interest rate by 75bps, the sharpest increase in decades.

The base metals complex started the day on the back foot, driven by the Fed decision; however, most of the losses were offset in the latter part of the day. As a result, aluminium remained broadly unchanged at $2,264/t after testing the support level of $2,220/t. Likewise, lead closed above yesterday’s settlement price at $1,995.50/t. Nickel gapped lower, breaking back below $23,400/t to close at $23,803/t. Copper struggled below the support of $7,460/t but lacked conviction above $7,600/t to close higher on the day. Meanwhile, China Las Mambas copper mine in Peru will be forced to halt its production due to road blockades as protests in the region persist. Zinc closed at $2,720/t.

Oil futures softened on weaker global economic demand expectations, with WTI and Brent falling to $88/bl and $95/bl. Precious metals wavered; gold and silver remained unchanged at $1,625/oz and $19.35/oz, respectively.

For more in-depth analysis of base and precious metals, please see our Quarterly Metals report.

Lme Metals Price And Volume 03112022

All price data is from 03.11.2022 as of 17:30


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