The chance of another round of stimulus from the U.S. has buoyed equity markets. Uncertainty remains, and we think the market may have moved too quickly. There is still a significant downside, but U.S. equities are up 2%, gold has also recovered from earlier losses to and trades at $1,650.2/oz. The gold spot to futures has eased slightly to $30/oz.
Copper and zinc saw large inflows of material, causing a decline in prices by $31.5 and $13.5 respectively to close at $5,002.50/t and $1,923/t respectively. Both cash to 3 spreads have consolidated today, but both remain in contango. Lead prices declined today to close at $1,712.5/t, according to SMM primary lead production gained 12% m/m as smelter utilisation rates increased following maintenance and the coronavirus. Nickel prices edged higher today closing at $11,507/t, the cash to 3 spread is still in contango at $73.5.
Crude oil inventories increased by 15.17m barrels, but prices increased as investors have their eyes on a production cut from major producers: front-month Brent and WTI trading at $32.45/bl and 24.38/bl respectively.