US stocks dropped today as the US and China trade relationship tensions re-emerge after Pres. Trump stated that he plans to scale back America’s reliance on the country. Additional statements involved promises of punishment for American companies that will decide to create jobs overseas. Investors sought to the dollar, causing the index gain to 93.289. In the UK, the stocks trended lower, and the pound weakened as Boris Johnson said that he ‘will not back down’ on Brexit negotiations with the EU. Emerging market stocks were also lower due to rising coronavirus cases in the region.
Metals prices were weaker today due to increased China-US tensions. Nickel prices sold off to test appetite at $14,700/t, but support at that level triggered a close at $14,888/t. Zinc saw the strongest selling today, down 3.71%, closing at the day’s lows at $2,417/t. For immediate delivery, zinc traded at the biggest discount to 3m contract since 2013. Aluminium remained under pressure, closing at $1,792/t, and the cash to 3m spread widened slightly into -$38.45/t. Copper tested the $6,650/t level in the second half of the day and closed near day’s lows at $6,668/t.
Oil futures plunged, as Abu Dhabi cut its official crude oil pricing for October. At the time of writing, WTI and Brent trade at $36.38/bl and $39.51/bl. Gold and silver were lower on the day, edging down to $1,930.80/oz and $26.59/oz respectively.
