US stocks fluctuated on the back of uncertainty around a new spending bill; escalating tensions with China added to market worries. Additionally, Trump stated that the coronavirus crisis would probably worsen before improving. To combat the spread of the coronavirus infection, the government ordered up to 600m doses of the Pfizer’s vaccine. The dollar extended its slide this week down to 94.889 and the US 10yr on Treasuries slid down to 0.5872%. Asian stocks lost some ground, as China vowed to retaliate after the US closed Houston Consulate, adding one of the biggest threats to ties between the countries.
Metals on the LME lost their ground today, except for tin which was well supported above $17,500/t and closed at $17,581/t. Copper prices sold off to test appetite at $6,450/t, but support at that level triggered a close at $6,486.00/t. Nickel saw stronger selling today but was supported above $13,100/t and closed at $13,136/t. Aluminium remained under pressure closing at $1,691/t; the cash to 3-month spread tightened slightly into-$36.50/t. Zinc consolidated closing at $2,213/t and lead followed the trend, closing lower on the day at $1,805.50/t.
Silver and gold continued to break multi-year highs, trading up to $22.39/oz and $1,862.77/oz respectively. Oil futures traded lower as US inventory signals sluggish demand, with WTI and Brent at $41.49/bl and $43.87/bl respectively.