US shares rebounded today, with tech firms leading the way. The dollar fell, and the yield for 10yr US Treasuries strengthened into 0.6968%. Tomorrow, the ECB is expected to keep the rates unchanged; new stimulus measures are also unlikely. In the UK, new social distancing measures are introduced as cases continue to rise; stocks were lower on the day. The pound softened into a six-week low but managed to recover losses, closing higher on the day.
Activity on the LME was mixed today, with only aluminium and lead closing lower. According to SMM, China boosted production of refined copper, aluminium, zinc, and NPI in August. Copper was well bid today, but failed above $6,750/t and closed at $6,734/t. Nickel was slightly firmer and managed to close just off the day’s highs at $14,921/t. Zinc and tin prices were marginally stronger on the day, closing on the front foot at $2,423/t and $18,015/t respectively. Aluminium tested the support level at $1,775/t but closed higher at $1,784/t. Iron ore prices were lower on the day, closing at CNY841/mt. Spreads were mixed today, but we saw some moderate tightening in nickel and zinc, into -$35.00/t and -$9.25/t respectively.
Oil futures bounced back, with WTI and Brent edging up to $37.86/bl and $40.63/bl. Precious metals were all higher apart from palladium; gold and silver trade at $1,944.50/oz and $26.83/oz at the time of writing.