The US stocks pushed higher as the Fed’s new approach towards consumer-price increases moved the markets. The dollar weakened to a 2-year low of 92.319, and the yield on US 10yr Treasuries advanced, the highest in 2-months. The yen strengthened on the news of Shinzo Abe resigning due to health reasons. US consumer spending slowed in July, signalling that further struggle is ahead, especially, as the government cut unemployment benefits in July.
Metals prices were all stronger today, except for lead, which closed on the back foot at $1,972.50/t. Aluminium was firmer today, testing the resistance at $1,805/t before closing at $1,800/t. Copper was also well bid, closing at a 2-year high of $6,667/t, as LME warehouses dropped to the 2005 low; the cash to 3-month spread tightened into $29.51/t. Zinc and nickel strengthened today, closing below resistance levels of $2,560/t and $15,500/t at $2,515/t and $15,367/t respectively. Tin remained range-bound, closing at $17,850/t.
Oil futures dipped today, as oil refineries on the Gulf Coast shifted to a recovery mode. At the time of writing, WTI and Brent trade at $43.03/bl and $45.05/bl. Precious metal prices were higher today, with gold and silver trading up to $1,970.45/oz and $27.59/oz respectively.