Consistent with our recent quarterly metals report, the easing of lockdown policies has prompted a return of risk appetite. Stocks rallied again today across the globe. On the data front, the U.S. trade balance was -$44.4b in March and the preliminary US Markit services and composite PMI were 26.7 and 41.8 respectively for April. The euro was weaker today after Germany’s top court passed a ruling that questioned the legality of the ECB’s stimulus package.
Metals on the LME all traded higher today as some moderate optimism returned to the market. Nickel gained the most ground, trading back through $12,000/t and closing at $12,002/t. Zinc was next in line, up 1.21% to close at $1,918/t just below resistance at $1,920/t. Copper broke back above the $5,150/t and closed at $5,158/t and has pushed higher after the close. Lead closed at $1,637/t. On the spreads, activity was largely range-bound but we did see in tightened again into $128/t back.
Gold prices consolidated once again and hold above $1,700/oz. Oil prices climbed again as production has triggered some optimism in the market. WTI and Brent trading at $24.54/oz and $30.59/oz. Global inventories remain high and demand conditions weak which are expected to weigh on the market in the long run.
