US stocks edged higher today ahead of the talks about virus relief package in the US. This bill is especially crucial as the enhanced unemployment benefit scheme expired last Friday. Europe’s shares were mixed after disappointing company earnings data. The dollar fell, and the 10yr yield on Treasuries softened to 0.5118%. China’s July vehicle sales have risen 14.90% y/y for the fourth straight month, amid government incentives. Asian stocks were higher despite US-Sino tensions taking a severe turn as President Donald Trump vowed to ban Chinese app TikTok in the US. There has been a large explosion in Beirut.
Activity on the LME was mixed today with only copper and tin closing lower. Nickel continues to be well bid, but failed above $14,130/t and closed at $14,113/t. Aluminium was slightly firmer and managed to close just off the day’s highs at $1,770/t. Zinc and lead prices were marginally stronger on the day, closing on the front foot at $2,339.50/t and $1,881.50/t respectively. Copper broke support at $6,450/t and closed at $6,453/t.
Oil futures rose despite rising OPEC+ supply to a market hit by a demand slump. At the time of writing, WTI and Brent trade at $41.64/bl and $44.43/bl respectively. Gold and silver found their strength once more, trading up to $1,998.20/oz and $25.54/oz respectively.