Copper Soars While Stocks Attempt a Comeback

Equity markets appear to be trying to put an end to their recent losing streak. US index futures and the FTSE are up about 0.25% this morning, while the Dax is up 0.1%. Cryptocurrencies are bouncing back, with Bitcoin climbing 2.2%, and the VIX is dropping back, both signs that fear may be starting to ease a bit. The US 10-year treasury note yield is steady near 4.60%.  

Metals are rallying this morning, especially Copper which has gained 1.5% and is trading at its highest level since May of 2022. This, combined with Gold gaining 0.5% to trade at $2,400 once again indicates that inflation pressures continue to broadly build even though energy prices have pulled back a bit this week. With the political situation in the Middle East not worsening so far this week, a correction has been underway in oil markets with US Crude and Brent Crude both down about 0.7% today. Natural gas, conversely, is up 2.8% ahead of this week’s storage report due at 10:30 am EDT.  

Three more Fed officials are speaking with traders looking for further hints as to whether and how long potential US interest rate cuts may be delayed. The Philadelphia Fed Manufacturing Survey (15.5 vs street 1.5 and previous 3.2) came in significantly stronger than expected, further weakening the case for rate cuts. US existing home sales are due at 10:00 am EDT.

In earnings news, homebuilder DR Horton is up 3.3% in premarket trading after beating the street on earnings and raising sales guidance for this year. Railroad CSX is up 2.7% premarket after beating expectations by a penny. Despite a solid beat, Las Vegas Sands is down 3.6% premarket. Netflix reports results after the close this afternoon.

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