European equity markets buckled today as the UK delayed some measures that would further re-open the economy and COVID cases in Spain continued to increase. Uncertainty surrounding the European economy increased following weak data, as GDP in Q2 declined 12.1% Q/Q and 15% y/y, core CPI for July was 1.2%. In the U.S. stocks are negative at the time of writing as energy stocks offset the strength in Tech. Florida has recorded a cumulative death total of 6,843, with total cases in the state at 470,386. Tensions between China and the U.S. continue to escalate after the U.S. sanctioned a Chinese company and two individuals after Michael Pompeo called China’s leaders tyrants. The dollar index was stronger today trading at $93.42, the 10 yr traded sideways to 0.546%.
Sentiment on the LME was cagey today, only zinc was up >1% on the day. Copper continued to consolidate today, and failed into $6,500/t prompting a sell-off back towards $6,400/t, the market closed at $6,413/t. The cash to 3 months spread settled at $9/t. Zinc was well supported today, through $2,300/t and closed at $2,318.5/t. Nickel prices soften today after failing above $13,900/t once again to close at $13,786/t. Lead consolidated once again, after rejecting resistance at $1,880/t to close at $1,879.5/t. Aluminium prices sold off back to $1,700/t, closing at $1,713.5/t, cash to 3s continue to widen to -$38.05/t. Tin was also softer today, closing at $17,897/t.
Energy prices have consolidated today with WTI and Brent trading at $39.82/bl and $43.18/bl respectively. OPEC+ are expected to increase supply in the coming month, but as we are seeing more cases in Europe air travel may falter. Precious metals have been well supported once again today, with gold and silver trading $1,972/oz and $24.06/oz respectively.