European equities came under selling pressure as traders continued to price in softer earnings and a higher probability of a recession in 2023. Investors are certainly focusing more on stocks with stronger margins and cash flow. US equities have edged higher after Jerome Powell reiterated the Fed's commitment to curbing inflation and suggested that the chances of a recession were not particularly elevated. The Fed will continue to keep a close eye on data to indicate the rate hike path. The dollar index softened slightly and with USDCHF coming under pressure.
Metals prices declined as demand concerns due to the economic slowdown. Tin came under heavy selling breaking back below $30,000/t to settle at $29,054/t, with the spread at $225/t. Lead and zinc were marginally weaker and closed at $3,551/t and $2,019/t. Ali failed above $2,500/t and closed at $2,479.50/t as energy costs eased marginally which will likely prompt more supply to come online in the medium term, however electricity costs are still high. Nickel came under heavy selling pressure after failing above $25,000/t, and closed at $24,449/t at the time of writing. Copper found support at $8,656/t and trades at $8,770/t at the time of writing with cash to 3s at $5/t.
Oil prices declined today as we continued to see some long liquidations and profit taking. Brent trades at $111.63/bl and WTI at $106.42/bl. Demand woes continue present near term risks to the downside but the longer term outlook is still tight. Gold and silver were flat on the day.
For more in-depth analysis of base and precious metals, our Q2 2022 Quarterly Metals report is out now!
All price data is from 22.06.2022 as of 17:30