US stocks were lower today on the back American jobless claims posting the smallest weekly decline, since March, down 10,000, adding to signs of stalling labour market recovery. US retail sales increased by 7.50% m/m, beating expectations, however, still below the growth seen in May. The dollar was down to 96.02, and the 10y yield on Treasuries weakened to 0.6069%. Chinese shares have experienced the worst sell-off since February, as retail sales came in lower than expected, despite positive GDP growth of 3.20% y/y in Q2. The euro remained range-bound as the ECB kept the emergency monetary stimulus programme unchanged.
Prices on the LME were firmer today except for aluminium and nickel which failed to gain a footing. Zinc prices were well bid and found support at $2,200.00/t, and protracted buying pressure caused a close on the front foot at $2,225.5/t. Copper was marginally stronger, closing below the new-found resistance level of $6,450.00/t at $6,436.50/t. Nickel prices lost ground in the first half of the day before picking up to the resistance level of $13,460.00/t to close at $13,459.00/t. Aluminium drifted lower, testing the support level of 1,660.00/t and closing at $1,670.50/t; the cash to 3-month spread tightened further into -$35.25/t.
Oil futures retreated after OPEC+ statement to start tampering output cuts from August, with WTI and Brent edging down to $40.98/bl and $43.58/bl respectively. Gold and silver were lower on the day, at $1,806.54/oz and $19.33/oz at the time of writing.