US stocks gained a foothold on the upside today alongside European shares as positive news around vaccine development and the speculations about Washington passing the stimulus bill this week. US jobs data painted a grim picture, as July payroll gains slowed down sharply to 167,000, down from 4.3m in June. Meanwhile, the US service industry expanded to 58.1 in July, the fastest pace since February 2019. The dollar softened into 92.627, and the 10yr yield on Treasuries picked up to 0.5445%. Eurozone’s composite PMI index climbed to the highest level in 2 years.
Metals prices were all stronger today, except for aluminium, which closed on the back foot at $1,767/t. Nickel was firmer today, testing the resistance at $14,600/t before closing at $14,419/t. Copper was also well bid, closing at $,6494.50/t; the cash to 3-month spread softened into $2.00/t backwardation. Lead and zinc strengthened today, closing above resistance levels of $1,930/t and $2,400/t at $1,933/t and $2,409/t respectively. Tin remained range-bound, closing at $17,885/t.
Oil futures rose on the back of falling US stockpiles. At the time of writing, WTI and Brent trade at $43.03/bl and $45.80/bl respectively. Gold continued its ascend, trading above $2,000/oz resistance level at $2,044.99/oz. Silver is $26.85/oz at the time of writing.