Stocks continued to fall ahead of the Federal Reserve meeting tonight, with investors hoping to see continued high levels of monetary support. There is a debate on how long such low levels of interest rates can be sustained, however, the Fed is most likely to remain dovish for some time. Treasuries climbed, and the dollar sank, yielding a 2.39% drop so far in June. US consumer inflation fell for the third consecutive month in May, down 0.1% y/y from a 0.8% y/y drop in April.
Metals on the LME traded higher today, except for lead, as moderate optimism returned. Aluminium was well supported, testing the appetite at $1,640/t level and closing at $1,627/t. Copper gained the most ground, as protracted buying pressure took prices higher through $5,850/t and closing at $5,907/t, with the spread softening slightly into -$22.00/t. Lead prices were weaker today, drifting closer the $1,765/t resistance level, however, closing lower on the day at $1,751.5/t. Similarly, nickel gained ground, however, resistance at $13,050/t prompted a close at $13,007/t. Tin was marginally stronger, closing at $17,190/t.
Oil subsided today amid the US stockpiles rising to record highs. At the time of writing, WTI and Brent trade at $38.69/bl and $41.01/bl respectively. Gold and silver have traded slightly higher up to $1,717.70/oz as $17.81/oz by the end of European business day.