Global equities fluctuated today as sentiment remains volatile. In the US, 1.48m Americans filed for unemployment benefits last week, indicating slowing labour market improvement. Orders for durable goods jumped to 15.8% in May, and Q1 Annualised GDP fell by 5.0% q/q, in line with expectations. Traditional safe havens such as treasuries consolidated, as did the dollar with outbreaks of the virus continuing to rise. European stocks recovered from their recent losses amid optimism over new ECB liquidity facility.
Commodities drifted higher today, except for aluminium, nickel and tin. Copper was well bid, closing just below the key resistance level of $5,920/t at $5,893/t. Lead gained ground closer to the end of the business day, testing the $1,790/t resistance level and closing just below at $1,786/t. Zinc prices were firmer today, closing at $2,050/t. The cash to 3-month spread tightened further into $6.50/t contango. Aluminium was marginally weaker today; however, support at $1,560/t prompted a close at $1,570/t. Nickel prices failed below support at $12,450/t and closed at $12,440/t.
Oil gained today on the back of marginal improvement in the US labour market, with WTI and Brent trading up to $38.67/bl and $41.01/bl respectively. Safe havens, including precious metals, edged higher. At the time of writing, gold and silver trade at $1,763.70/oz and $17.78oz.