US stocks oscillated once more today, edging close to record highs, on the back of slowing economic recovery. US retail sales slowed in July, to 1.2% from 8.4% m/m in the previous month, as coronavirus cases surged. Similarly, industrial production rose 3.0% m/m in July, after a 5.7% gain in June. Negotiations around the stimulus package remain at a standstill, adding to market uncertainty. The dollar softened, and the US 10yr yield fell into 0.6931%. European stocks fell following the UK’s decision to add some of the European countries to the list of quarantine countries. US-China trade talks are to resume in the coming days.
LME metals have been mixed, with aluminium and zinc lower on the day. Copper prices edged higher today, breaking above $6,350/t to close at $6,366.50/t, the cash to 3-month spread has tightened once again to $9.00/t. Nickel was well-bid above $14,300/t and closed just off the day’s high at $14,366/t. Lead was mostly range-bound and tested the resistance level at $1,960/t before closing at $1950.50/t. Aluminium traded lower to the $1,750/t support level and closed on the front foot below at $1,746/t. Zinc was weaker today, closing at $2,367.50/t.
Oil futures subsided as the virus fears capped prices, with WTI and Brent down to $42.08/bl and $44.81/bl. Gold and silver headed for another day of gains, edging up to $1,941.05/oz and $26.25/oz respectively.