US stocks began the week on the front foot as record gains in home sales offset an increase in coronavirus cases. This weekend, global coronavirus-related cases crossed 10m, with 500,000 deaths so far. The yield on a 10y Treasuries declined to 0.634% and the dollar strengthened. The US-Sino trade conflict continues to advance, as countries begin company blacklisting; pressure is likely to persist up to US presidential election. UK mortgage approvals sank to record low in May, indicating the extent to which the housing market has been hit by COVID-19.
Prices on the LME were supported today as risk appetite prompted the market. Only tin was lower on the day, closing at $16,775/t. Aluminium remained well supported above $1,600/t, with prices closing near day’s high at $1,609/t. Copper remained range-bound, closing closer to the support level of $5,950/t at $5,961.5/t. Nickel broke above key resistance today, closing above $12,800/t at $12,806/t. Lead prices traded up to $1,800/t, closing just above at $1,801.5/t. Cash to 3 months tightened into -$9.75/t.
Oil prices were firmer, supported by Chesapeake, US shale pioneer, plans to cut drilling for 2020 as it filed for bankruptcy. At the time of writing, WTI and Brent trade at $39.30/bl and $41.56/t respectively. Gold and silver extended their gains, edging up to $1,770.50/oz and $17.83/oz at the time of writing.