Equity markets were uneasy today as leading indices oscillated between negative and positive territory. The dollar gained ground as treasuries yields also improved. The U.S. 10yr increased to 0.7413%, close to 3 weeks high. We continued to see pressure on the euro following yesterday’s court decision in Germany. European data was weak today, as April’s preliminary Markit services & composite PMIs were 12 and 13.6 respectively. Retail sales for March were -9.2% y/y.
Sentiment on the LME was mixed, nickel and zinc prices were well supported. Nickel prices broke key resistance at $12,300/t and closed at $12,303/t. Zinc broke through resistance at $1,950/t and closed at $1,975/t. The cash to 3-month spread tightened into $1/t back. Copper prices were also firmer today closing at $5,198/t. Ali was marginally weaker, closing at $1,479.50/t.
Spot gold sold off today, breaking through support at $1,700/oz and currently trade at $1,686/oz. Oil prices failed into key resistance today with WTI and Brent trading at $23.62/bl and $29.30/bl respectively.