European equity indices firmed today. Christine Lagarde suggested that the Euro area was heading for the worst case out of the scenario’s they’ve analysed. The European Commission is expected to give a new fiscal stimulus of $825bn to help the bloc recover. In the U.S., indices have oscillated between positive and negative territory, as positivity surrounding the easing of lockdown restrictions is tarnished by U.S. – China relations.
Sentiment on the LME was weaker today except for Ali which closed higher once again at $1,525/t. There remains significant uncertainty and relations between China and the U.S. compound these fears. Copper prices were supported below $5,250/t and closed at $5,259/t, the market has firmed towards $5,300/t after the close. Zinc and lead came under strong selling pressure today both closing near the day’s lows at $1,920.50/t and $1,638/t respectively. Nickel failed above $12,300/t and closed at $12,116/t. Ali cash to 3-month spread tightened into -$24.50/t contango, and tin tightened to $189/t back.
Silver prices continue to be well supported, trading at $17.29/oz with gold holding above $1,700/oz at $1,706/oz, at the time of writing. Energy prices have pared earlier losses, with Brent and WTI trading at $35.16/b, and $33.34/bl, respectively.
