US stocks have gained ahead of the Fed meeting this evening, as investors anticipate extended economic stimulus along with continued record-low interest rates. The US pending home sales increased to 16.6% m/m, beating expectations; another economic signal of a reviving housing market. The dollar declined, and the 10yr yield on Treasuries fell to 0.5773%. A round of GDP results is being released this week, with most expected to contract significantly for Q2. In Asia, Hong Kong extended its recession for the fourth straight quarter with a 9.0% q/q GDP drop.
Metals prices were mixed, copper was softer, but the market found support above the $6,440/t level and closed at $6,474/t. Aluminium was well supported above $1,720/t, causing prices to recover to close at $1,725/t. Lead prices oscillated between positive and negative territory but closed higher on the day at $1,873/t. Lead cash to 3-month spread tightened further into -$17.49/. Nickel was supported through resistance at $13,800/t to close at $13,876/t. Tin was lower on the day, closing at $17,930/t.
Oil futures rose on the back of shrinking US inventories, with WTI and Brent up to $41.28/bl and $43.69/bl respectively. Gold and silver gave back some of their recent strength. At the time of writing, gold and silver trade at $1,957.92/oz and $21.14/oz respectively.
