Earnings season has caused major stock indices to decline today. The banks and energy sectors have been hit the most today. The S&P 500 and DOW Jones are down 2.8% and 2.4% respectively, with major European indices down over 3%. U.S. data was weak today with retail sales m/m in March to 8.7%, industrial production was down 5.4% m/m.
Sentiment on the LME has been damaged by the dark cloud of earnings and fears over the weak Chinese economy. Aluminium, Lead, and Zinc are the only metals who found support. Gains were muted though and aluminium managed to hold above support at $1,507.5/t. Lead managed to close above $1,701/t, and zinc closed at $1,932/t. Spreads are still in contango despite zinc tightening slightly today. Copper, nickel and tin lost ground today.
Gold prices have lost moderate ground today following the recent rally but we anticipate sentiment to remain on the front foot in the longer term.