Global equity indices have softened today, with European markets feeling the brunt of the selling pressure. In the U.S. indices have pared earlier losses but sentiment remains uncertain. Trade tensions are adding apprehension to markets and President Trump continues to suggest that tariffs on European cars. Wholesale inventories declined in April on a month on month basis to -16.9%. Data in Europe was weak with Q1 GDP at -3.6% q/q and -3.1% y/y.
Sentiment in the metals market mixed once again. Zinc prices were softer today testing support at $2000/t, however, the market held above this level to close at $2017.50/t. Nickel prices failed into resistance at $13,100/t and the market closed at $12,913/t, the market has continued in to edge lower. Copper prices failed into $5,780/t and closed at $5,774/t, the spreads softened slightly. Tin continues to move higher and the backwardation in the spread is $210/t.
Energy prices edged lower today as bullish sentiment paused. Libya’s oil fields have started once again as demand continues to improve slowly. Brent and WTI trade at $40.35/bl and $37.89/bl. Gold prices have rebounded strongly in recent sessions and the market trades at $1,715.18/oz. Silver has consolidated above $17.50/oz, with prices at $17.66/oz.