Stocks extended their rally, with Nasdaq climbing closer to its record high, as investor sentiment improved on the back of economic recovery from the pandemic. The dollar dropped to the lowest point since March 12th after the US private payrolls showed a slowdown in job losses. Eurozone businesses suffered another month of contraction of activity in May; however, there are prominent signs of recovery m/m. European countries are now planning to reactivate European travel by mid-June.
Commodities drifted lower today, except for aluminium and zinc, which increased marginally. Zinc lost some ground at the beginning of the trading day but found support at $1,996/t, and closed at $2,021.5/t. Aluminium gained ground, however, resistance at $1,570/t prompted a close at $1,568.5/t. Copper was range-bound, resistance testing at $5,550/t and closed at $5,524.5/t. Nickel drifted lower closer to the end of the day, testing the $12,700/t support level and closing at $12,867/t. After taking out the previous day’s support appetite for prices below $16,000/t, prompted a close at $16,001/t.
Energy prices subsided today as Saudi Arabia has proposed moving the next OPEC+ meeting closer to mid-June, further delaying a deal resolution. The inventories stay elevated as demand remains subdued, capping the potential for higher prices. WTI and Brent traded around $37/bl and $39.6/bl respectively. Gold and silver sold off alongside the dollar, signalling that the economic effects of the pandemic are waning in developed economies. At the time of writing, gold and silver are trading at $1,697.20/oz and $17.67/oz respectively.