Uncertainty challenged risk appetite today. Following Prime Minister Boris Johnson’s statement about getting businesses back to work generated confusion. NY is expected to continue in lockdown into June. The US stock market has taken back some of the earlier losses and as the tech sector was supported. The oil market oscillated between positive and negative territory today after Saudi Arabia outlined a plan to cut another 1m barrels a day of production to their lowest level in 18 years in June.
Sentiment on the LME was positive today despite the uncertainty. Zinc and lead prices were well supported today, gaining $25/t and $27/t respectively, to close at $2,027/t and $1,671/t respectively. Nickel broke above resistance at $12,350/t and managed to hold above this level to close at $12,354/t, prices have firmed since the close. Ali continued to test appetite at $1,500/t and closed at $1,497.50/t. Cu lacked conviction today as macro uncertainties prevailed, prices closed at $5,257/t. Tin cash to 3s continued to tighten into $151/t back.
Precious prices were marginally softer this afternoon, as gold dropped back below $1,700/oz. Oil prices have given back earlier gains, with WTI and Brent trading at $24.36/bl and $29.88/bl respectively.