US stocks lost some ground during the day, coming off week’s high, amid concerns over the second wave of coronavirus cases. This sentiment offset the data that showed that 4.8m payrolls were added in June, up from 2.7m previous month. At the same time, the unemployment rate declined from 13.0% to 11.1%. The dollar strengthened, and 10y Treasuries yield subsided. Additional remarks from yesterday’s minutes confirmed US criticism against China in relation to Beijing’s tough national security law. In Europe, the unemployment rate has picked up marginally in May, up to 7.4%, and the euro gave back some of its recent strength.
LME metals today saw another day of moderate gains, with aluminium and copper closing lower on the day. Zinc prices were firmer; however, selling pressure in the second half of the day prompted a close just above the key support level of 2,040/t at 2,044.5/t. Nickel gained the most ground, closing at $12,947/t; cash to 3m spread softened into -$50.00/t. Aluminium tested the resistance at $1,630/t before closing closer to the day’s low at $1,621/t. Copper prices were weaker; however, support at $6,045/t prompted a close at $6,073/t. Lead remained mostly range-bound, closing at $1,782/t.
Oil prices gained today on the back of a fall in crude stockpiles, bring WTI and Brent up to $40.26/bl and $42.63/bl respectively. Gold was marginally stronger, trading at $1,776.69/oz, and silver fell to $18.00/oz.