US stocks fluctuated today as a drop in consumer sentiment from 78.10 in June to 73.20 in July raised concerns about economic recovery. The dollar softened into 95.98, and 10Y yield on Treasuries edged higher to 0.6201%. European shares were higher on the back of continued hope of an $855bn recovery stimulus pact from the policymakers. BOE Governor said that Britain’s economy has started to recover, yet some job-intense sectors remain weak. Chinese stocks steadied after a 5.00% drop yesterday.
Activity on the LME was mixed today with only copper closing higher. Lead was subject to strong selling pressure, falling below the key support level of $1,820.00/t and closing at $1,815.00/t. Aluminium prices were softer in the first half of the day before gaining strength to close at $1,661.50/t. Nickel continues to give back this week’s gains, closing on the back foot at $13,220.00/t. Nickel cash to 3-month spread widened into -$35.00/t. Similarly, zinc broke support at $2,190.00/t and closed at $2,182.50/t. Copper prices remained range-bound, closing marginally higher on the day at $6,448.00/t.
Oil futures continue their decline in the wake of sluggish economic recovery, with WTI and Brent trading at $40.50/bl and $43.09/bl respectively. Gold and silver were higher, at $1,809.98/oz and $19.35/oz at the time of writing.