European stocks climbed today on positive investor sentiment. Around the bloc, the virus hotspots are rising again, threatening the pace of economic recovery. UK housing prices gained the most since 2016 in August, as stimulus and tax cuts boosted demand. The pound fell as concerns surrounding the no-deal Brexit intensify. In the US, stock markets continued to decline, but we expect volumes were thin as it was a US holiday today. The dollar strengthened, and the yield on 10yr US Treasuries rose into 0.7180%. China’s exports rose 9.5% y/y, a rate of growth not seen since March 2019; an indication of recovering trade.
LME metals have been mixed, only with nickel lower on the day, closing at $15,186/t. Copper prices edged higher in the second half of the day, as Chile reported an 11% drop in copper shipments in August, triggering a close below the resistance level of $6,800/t at $6,789/t. Copper cash to 3-month spread has widened to $18.99/t. Aluminium was well-bid above $1,795/t and closed at $1,797.50/t. Zinc traded higher to the $2,510/t resistance level and closed on the front foot at $2,509.50/t. Lead was mostly range-bound and tested resistance at $1,990/t before closing at $1,971/t. Iron ore trended lower, closing at CNY858/mt.
Oil future extended their retreat on the news of Saudi’s wavering consumption. At the time of writing, WTI and Brent trade at $39.17/bl and $42.09/bl. Precious metals performance was mixed, and gold and silver traded down lower to $1,929.14/oz and $26.88/oz respectively.