US stocks started the week on the front foot on the back of the reinforced central bank dovish stance. While the number of infections in the country’s hot spots starts to tail off, investors expect prolonged dovish stance from the Fed, as high-frequency economic indicators point to a slowdown. US orders for durable goods rose above expectation, and Dallas Fed manufacturing activity continued to decline; however, at a lower rate m/m. The dollar was down, and the yield on 10yr Treasuries fell to 0.5806%. Nations in Asia introduced another round of tightening restrictions in the country as infections show no sign of a slowdown.
Prices on the LME were supported today as risk appetite prompted the market. Zinc prices traded up to $2,240/t, but resistance at this level triggered a close at $2,237/t. Zinc cash to 3s tightened today into -$8.50/t. Aluminium prices also strengthened today; prices closed near the day’s high at $1,708/t. Lead gained the most, up 2.09%, closing at $1,850.50/t. Nickel was supported again today but found resistance at $13,870/t prompting a close at $13,719/t. Copper was range-bound, closing higher on the day at $6,420.50/t.
Oil futures slid with US-China tensions compounding, urging WTI and Brent down to $40.78/bl and $42.64/bl. Precious metals continued their rally, with gold and silver trading at $1,939.22/oz and $24.25/oz respectively.
