Most of the US stocks edged higher today ahead of the earnings release later in the week; however, the gains remain capped as rising coronavirus infections threaten the economic recovery. Investors are awaiting a rescue package from the US to replace the expiring benefits. The dollar softened to 95.84, and the 10y yield on Treasuries edged down to 0.6151%. In Europe, the leaders appear to be closing in on the $858bn stimulus package. The euro touched a four-month high on the back of this progress. The UK suspended an extradition treaty with Hong Kong, adding to tensions with China over a security law.
Metals prices were well bid today as risk appetite took hold of the market. Copper prices broke through resistance at $6,480.00/t and closed at $6,487.50/t. Lead prices also were also well bid and closed at $1,840.50/t. Nickel tested the resistance level of $13,350.00/t and closed at $13,236.00/t. Aluminium fluctuated closing at 1,664.50/t; the cash to 3 months spreads tightened slightly to -$37.50/t. Zinc and tin were both higher on the day, closing at $2,200.50/t and 17,360.00/t respectively.
Oil future declined, with WTI edging down towards $40.00/bl. At the time of writing, WTI and Brent trade at $40.59/bl and $43.11/bl respectively. Gold and silver were higher on the day, edging up to $1,816.21/oz and $19.76/oz respectively.
