All eyes were on the oil markets today as OPEC+ held their virtual meeting, prices were supported into the meeting. Brent prices surged higher to test $36.40/bl but pared losses when investors got knowledge of a cut of 10m bpd after some were hoping for larger cuts; Brent prices trade at $33.70/b at the time of writing. Equity markets in Europe and the U.S. have all posted gains as we enter the long weekend. Initial claims in the U.S. rose 6.6m bringing the recent total to just shy of 17m, prompting the Fed to provide $2.3trn of support.
Sentiment on the LME was tentatively positive, tin gained the most ground closing just shy of $15,000 at $14,958/t. Cash to 3s continued to tighten into $115/t back. Nickel was well bid as investors looked to lifting restrictions on Wuhan and the economy nearly back to full capacity. Nickel closed at $11,672/t, up $168 on the day. Ali was bid, closing at $1,479/t and we expect the market to remain under pressure. Zinc was the only one that closed lower on the day at $1,901/t; copper and lead closed at $5,019/t and $1,722/t.
Precious metals were well supported as the Fed and the U.S. government looked to increase support. The senate democrats rejected the $250bn for small business but gold continues to rise, trading at $1,685/oz at the time of writing.
Have a good weekend and stay safe.