The ECB took centre stage today and delivered further crisis support by reducing funding costs for banks. They did not increase bond-purchases but once again called on governments to increase fiscal stimulus to aid their monetary policy support. Christine Lagarde painted a downbeat picture for economic data in the coming months. U.S. unemployment figures showed an increase in jobless claims, over what was expected. Equities have weakened today.
The dark clouds of weak economic data prompted selling pressure on the LME today, causing a dreary month-end. Copper prices broke below key support at $5,200/t and closed at $5,188/t. Nickel and lead also sold off strongly today, closing at $12,192/t and $1,628/t respectively. Despite some moderate tightening in the cash – 3months spread into $5.75 contango, zinc prices also weakened to $1,939.50/t and has sold off further after the close. Ali broke back through support at $1,500/t to close at $1,494/t. Spreads were mostly sideways today but we did see some moderate tightening for ali and zinc.
Gold prices continued to weaken, down 1.5% to $1,686.6/oz. Oil prices continue to rise, with brent and wti trading at $25.21/bl and $17.69/bl respectively.