US stocks fluctuated today on the back of uncertainty surrounding the economic outlook. The US initial jobless claims remained unchanged at 884,000, whereas continuing claims rose to 13.4m in the week ending August 29. The dollar softened, and the yield on 10yr US Treasury strengthened into 0.7115. Meanwhile, coronavirus-related cases surged in Europe, surpassing the US in daily new infections. In today’s ECB meeting, the bond-buying stimulus is expected to be raised later this year.
The sentiment on the LME was weaker today, except for aluminium which recovered from last day’s losses to close at $1,789.50/t. Copper swung between gains and losses, edging up to the resistance level at $6,760/t in the second half of the day before closing near the day’s lows at $6,668.50/t. Copper cash to 3m spread tightened marginally to $25.50/t. Nickel was particularly weak as protracted selling pressure triggered a close at $14,832/t. Zinc and lead prices traded lower and closed below the key resistance level of $2,420/t and $1,900/t at $2,416.50/t and $1,882.50/t respectively. Tin was range-bound, closing at $18,000/t.
Oil futures pared losses today on the back of weaker equity markets. At the time of writing, WTI and Brent trade at $37.89/bl and $40.56/bl. Gold and silver were higher today amid market uncertainty, edging up to $1,959.50/oz and $27.07/oz respectively.
