Markets have been buoyed today by renewed optimism causing risk assets to rally. Leading equity indices, energy, and metal prices have been well bid. The majority of agriculture markets are higher today at the time of writing. The renewed optimism was off the back of positive vaccine results from Moderna Inc. Today’s activity comes as lockdown restrictions across the globe continue to be eased but also as Fed Chair Jerome Powell has warned of lengthy recovery and downside risks.
Metals prices were well bid today as risk appetite gripped the market. Copper prices broke through resistance at $5,300/t and closed at $5,317.5/t. Nickel prices also were also well bid and close at $12,250/t. Zinc and lead closed above key resistance as well at $2,017/t and $1,662/t respectively. Ali closed fractionally below key resistance at $1,500/t at $1,497/t. Cash to 3 months spreads tightened slightly with zinc moving into $5.25/t back, while copper and lead tightened to $25.5/t and $17.75/t respectively. Downside risks remain and activity is still within range, but it remains to be seen if strength can be sustained.
Energy prices continue to rise, with WTI and Brent gaining ground today, both assets up around 10% on the day, and trade at $32.76/bl and $35.41/bl respectively. Precious metals prices have had a mixed day today. Gold and silver prices rallied at with risk assets this morning but have pared those gains this afternoon with gold now down on the day at $1,731/oz.