The US stocks plunged today as Trump weighted on a fresh wave of tariffs on some European economies and the UK. Continued concerns around rising coronavirus cases globally added to the investors’ worries. The dollar advanced, and the euro fell. The world outlook has been downgraded by the IMF to decline by 4.9% in 2020, down from a previous forecast of -3.0%, confirming the case for slow global recovery.
The sentiment on the LME was weaker today except for lead which recovered from last day’s losses to close at $1,762/t. Aluminium was particularly weak as protracted selling pressure triggered a close below a key support level of $1,580 at $1,576/t. Copper was well bid in the first half of the day; however, failed above $5,940/t and closed near day’s lows at $5,865/t. Nickel prices traded lower and closed above the key resistance level of $12,550/t at $12,547/t. Zinc was range-bound and closed at $2,036.5/t.
Oil slid as record-high inventories, and economic uncertainty persisted. At the time of writing, WTI and Brent are at $37.68/bl and $40.02/bl respectively. Gold extended its rally, edging closer to the levels last seen in 2012. Gold and silver trade at $1,765.69/oz and $17.58/oz at the time of writing.