Despite the U.S. extending the lockdown period to April 30th, major U.S. equities are gaining ground. The S&P 500 has filled the gap as the DOW has broken above 22,000. China’s economy is returning to full capacity slowly, with the economy at 85% as of March 27th, excluding the Hubei province. The road to pre-outbreak levels is likely to be slow, to prevent a second breakout of the virus. This week’s macro calendar is packed, and we expect this to feed volatility.
Price on the LME was weak today with all prices losing ground except tin. Copper prices fell towards $4,765/t as demand outside of China is expected to be inadequate for some time. Cash to 3-month spreads has consolidated Friday’s weakness. Aluminium prices have fallen 1% to $1,530.50/t, cash to 3s softened to $32/t where the spread as previously found support. Lead, and Zinc prices have held their nerve today, spreads tell a mixed outlook with lead softening today to -$10.50/t. Zinc has marginally tightened into -$8.75/t.Elsewhere, gold prices are marginally softer but hold above $1,600/oz at the time of writing. Oil prices have taken the biggest hit today with WTI and Brent down 5.4% and 11.6% respectively.
