Uncertainty prevailed today, causing U.S. equities to oscillate between negative and positive territory following warnings from Dr Fauci about re-opening the U.S. economy. Dr Fauci said that reopening the economy too quickly ‘could even set you back on the road to recovery’. Avoiding a second wave is key for all, and even though New York is one of the worst affected areas, the majority of people still have not contracted the disease. It is also worth remembering the second wave of the Spanish flu was worse than the first. U.S. CPI y/y was 0.3% but ex-food and energy was 1.4% y/y.
On the LME prices were weaker today with zinc giving back the majority of yesterday’s gains, closing at $2,005/t. Protracted selling caused lead prices to close on the back foot at $1,638/t. Ali and nickel were also under pressure today both closing down at $1,477.5/t and $12,324/t respectively. Copper once again lacked conviction as uncertainty prevailed, the market closed at $5,256.5/t. The spreads remained range-bound but tin continued to tighten into $160/t back. Speculators cut bets on copper, ali and zinc last week, according to LME reports.
Gold was slightly stronger today after comments from the Fed and also uncertainty about reopening the U.S. economy. Oil prices gained ground today as investors start to see demand improvement from lockdown eases. WTI and Brent trading at $25.94/bl and $30.30/bl respectively.