US stocks picked up today, approaching all-time highs yet again, as investors found confidence in the market. US consumer prices gauge posted the biggest monthly gain in about 30 years, on the back of improving vehicle and apparel costs; however, inflation remained broadly unchanged, at 1.0% y/y, as pandemic has kept the demand suppressed in July. The UK has entered its first recession since 2009 in Q2 2020, down 20.4% q/q, as lockdown measures took a toll on the economic activity. In the latest round of trade talks, the UK has confirmed positive progress with the US, and that both sides agreed to further negotiations in the coming months.
Sentiment on the LME was tentatively negative, only with copper finishing higher on the day. Nickel prices sold off to test appetite at $14,000/t, but support at that level triggered a close at $14,258/t. Zinc also saw strong selling today but was supported above $2,360/t and closed at $2,401/t. Aluminium gained ground in the second half of the day, however, still closed marginally lower at $1,787/t. Aluminium cash to 3-month spread widened slightly into -$36.80/t. Zinc and lead were both down on the day, closing at $2,401/t and $1,957.50/t respectively. Copper consolidated, but resistance at $6,450/t level triggered a close at $6,432.50/t.
Oil futures headed towards a 6-month high with shrinking US stockpiles signalling recovering demand. At the time of writing, with WTI and Brent are edging up to $42.34/bl and $45.26/bl respectively. Silver and gold rebounded strongly to $1,945.6/oz and $26.05/oz respectively.