US and European stocks have risen today on the back of Congress negotiating a relief package along with European leaders securing an $860bn recovery plan. Positive news on three potential coronavirus vaccines, including a candidate from Oxford University / AstraZeneca, followed by CanSino Biologics aided to the rally; however, growing number of infections worldwide adds to investor uncertainty. The dollar softened into 95.34, and the US 10yr yield on fell to 0.6004%. In the UK, the budget deficit swelled to 60-year highs of $45bn in June as a result of record spending on coronavirus stimulus.
Prices on the LME continued to rise today. Zinc prices gained the most to close on the front foot at $2,245.00/t; the cash to 3-month remained in contango at -$9.25/t. Aluminium prices have also found support, closing up just below the key resistance level of $1,700.00/t at $1,696.50/t. Nickel prices broke through support of $13,400.00/t to close at $13,466.00/t; the spreads softened to -$43.00/t. Copper prices were marginally stronger today, closing at $6,534.50/t. Lead tested the key resistance at $1,850.00/t to close at $1,848.00/t.
Oil futures jumped. At the time of writing, WTI and Brent stand at $42.03/bl and $44.52/t respectively. Gold and silver surged to multi-year highs on virus spreading, up to $1,839.43/oz and $21.02/oz.