U.S. stocks have buckled today as investors look too weak economic data and consumer confidence. This week is full of macro data, with Euro-area GDP on Thursday and forecasts suggest a contraction of 4.2% q/q. Some European countries are starting to ease their lockdown policies but in our opinion, the contraction in Q2 GDP will easily hit double digits.
Activity on the LME was mixed today. Copper prices edged higher through key resistance at $5,200/t to close at $5,223/t. Aluminium prices closed at $1,504/t today but the cash-3 spread has weakened today to $39.25/t. Zinc was well bid today, closing at $1,934/t with the spread tightening slightly into $-6.25/t. Nickel and lead were marginally supported today closing at $12,294/t and $1,643/t. The tin cash to 3 month spreads tightened to $120/t back.
Gold prices were marginally softer but remain on-trend. Oil prices were volatile today, as S&P Global Inc told investors in a leading index to sell their position in the June contract in an attempt to prevent a repetition of activity from May’s delivery. WTI trades at $12.17/bl with Brent at $20.07/bl.