US stocks rose today on hopes that the Fed will maintain its ultra-loose policy stance as it aims to lift the economy out of the recession. US homebuilder optimism rose to a record of 83 in September, as low mortgage rates drove the housing demand. US retail sales rose 0.6% m/m in August, below estimates. Meanwhile, the House Speaker Nany Pelosi doubled down on her effort to get the White House to agree on a $2.2trn package. The dollar edged lower to 92.987, and the yield on 10yr US Treasury softened into 0.6691%. In the UK, Boris Johnson stated that labs do not have enough capacity to cope with testing demand; however, promised to set appropriate measures soon.
LME metal prices were on the front foot today, apart from lead, which closed lower on the day at $1,894/t. Zinc prices were well supported and tested resistance at $2,540/t and closed just off the highs at $2,528/t. Tin was well bid in the second half of the day, testing the resistance level of $18,335/t, before closing below at $18,275/t. Copper prices remained supported above $6,740/t before closing at $6,777/t; the cash to 3-month spread tightened to $16.50/t. SHF copper prices, however, softened, closing at CNY51,810/mt. Nickel and aluminium were range-bound but closed higher on the day at $15,226/t and $1,795.50/t respectively.
Oil futures rose today as shrinking US stockpiles offset the concerns of oversupply. At the time of writing, WTI and Brent trade at $39.88/bl and $42.02/bl. Precious metals climbed as investors awaited the news from the Fed, with gold and silver edging up to $1,965.23/oz and $27.32/oz respectively.