We saw stock indices in Europe softened today after oscillating between positive and negative territory. In the U.S. stocks are in positive territory as investors remain buoyed from Friday’s jobs data. Investor sentiment in Europe was weaker at -24.8 from -22 in May. We continue to see dollar weakness into this week’s Fed meeting.
Metals prices were mixed, with lead softer but the market found support below the 100 DMA at $2073.70/t and closed at $1,759.50/t. Zinc was well supported below $2,000/t, this caused prices to recover well to close at $2,042/t. Copper prices oscillated between positive and negative territory. Supply into China has started to tighten outlined by the drop off in imports but demand remains subdued. The 3-month copper price closed at $5,699/t, as the cash to 3-month price starts has also tightened to -$19/t contango. Nickel was supported through resistance at $13,000/t to close at $13,064/t. Aluminium remains closed above $1,605/t.
Energy prices have softened after Saudi indicated they would be ending their extra cuts. Brent and WTI trading at $41.03/bl and $38.33/bl respectively. Precious metals have also rallied once again as investor bought the dip gold and silver trade at $1,697/oz and $17.66/oz, respectively at the time of writing.