Equity markets struggled for conviction today. In Europe, indices closed down, after failing to hold onto earlier gains. In the US, the S&P and Dow Jones have been oscillating between positive and negative territory as investors remain conflicted by the threat of rising COVID cases in the U.S. and China, and large stimulus being injected into the economy. Equity traders do not believe we will go back into the complete lockdown, despite the threat in China rising. The dollar index was slightly weaker today, and President Trump had a weekend to forget in Tula Oaklahoma where he held is the first rally in over 3 months.
LME prices were stronger today, except Nickel and lead. Copper price continued to strengthen, despite some fears that parts of China are heading back into lockdown. Cu closed near the highs at $5,880.50/t and the cash to 3month spread also tightened into -$19.50/t. Appetite for Ali below $1,600/t, led to a close at $1,603/t. Zinc edged higher today, closing at $2,087.50/t after failing to break above $2,100/t. Nickel closed down $122 at $12,647/t after struggling to gain a footing above $12,805/t. Lead was marginally weaker at $1,777.5/t.
Energy prices are holding above $40/bl as investors continue to look for stronger demand in the coming months. Brent and WTI trading at $42.66/bl and $40.06/bl, respectively. Precious metals were well bid today with gold testing appetite around $1,760/oz, silver trades at $17.79/oz.