US stocks opened lower today, mirroring declines in European stocks following the European elections. Stronger US data last week reinforced the market's belief in the higher-for-longer interest rate narrative, causing the US and EU curves to tighten by 5-9 basis points. While we do not expect the Fed to cut rates this week, the dot plot will be crucial for gauging policymakers' sentiment for the remainder of the year. The dollar increased again today, trading at 105.3 against other major currencies, while the 10-year US Treasury yield edged slightly higher to 4.45%.
This week began on a quieter note as the LME market evaluated the impact of the recent weeks' weakness. We believe that the market's trajectory will likely continue to align with copper's performance, seeking stable support levels for a potential recovery. Our copper outlook remains moderately bullish for the medium term, although we anticipate some near-term volatility, especially this week, as the market searches for its footing. Notably, copper tested and rebounded from Friday's low of $9,750/t to close at $9,899/t. Meanwhile, aluminium found some stability, though it remained under the $2,600/t mark at $2,576/t. On the other hand, lead and nickel saw marginal appetite for lower prices, testing the support level at $2,200/t and $18,000/t, respectively. Lead closed below this level at $2,207/t.
Precious metals rebounded slightly, with gold at $2,304/oz and silver at $29.4/oz. Oil continued its upward momentum from last week, with WTI rising to $76.4/bbl and Brent crude at $80.4/bbl.
All price data is from 10.06.2024 as of 17:30