US stocks edged higher on softer-than-expected producer inflation; the market still anticipates a 50bps hike from the Federal Reserve in December; however, the labour and inflation data releases continue to drive the market sentiment about the direction of monetary policy tightening on the day. PPI rose by 8.0% y/y in October, vs the estimate of 8.3%, another important inflation reading below market expectations. Further comments from the Fed officials supported the risk-on sentiment, with Bank of Philadelphia President Harker expecting the bank to slow the pace of interest-rate increases. At the same time, data by the Fed Bank of New York suggested that household debt continued to increase, climbing at the fastest annual pace since 2008 to $351bn, with higher mortgage debt driving the incline. The dollar weakened into 106, and the 10yr US Treasury yield edged lower to 3.80%. The pound jumped higher to 1.20, the highs not tested since late August.
Nickel gapped higher on the open, at $31,000/t, the June highs, jumping higher by more than 6.5% once again to close at $30,254/t; the news of production cutback at the Goro mine in New Caledonia contributed to today’s rally. Likewise, tin rallied by more than 6.0% to close at $23,386/t. Elsewhere, the appetite was lacklustre, and the momentum was pretty much unchanged. Aluminium softened slightly, but support at $2,430/t brought the level back to close at $2,435/t. Copper fluctuated but still edged marginally higher on the day to $8,376.50/t. Likewise, lead and zinc were range-bound and closed at $2,218/t and $3,111.50/t, respectively.
Oil futures wavered as OPEC cut its near-term outlook; WTI and Brent remained at $86/bl and $93/bl. Silver weakened to $21.50/oz; gold stabilised at $1,770/oz.
All price data is from 15.11.2022 as of 17:30