Global stocks advanced today over economic stimulus and that President Donald Trump has been released from the hospital. Market consensus shows that the polls have suggested a stronger lead for Joe Biden as the next president of the US. US service industry expanded by more than expected in September, as a pickup in employment points to a better economic recovery. The dollar fell into 93.458, and the yield for 10yr US Treasuries strengthened up to 0.7535%. As global infections surpass 35m, WHO stated that 10% of the world’s population might have been infected with COVID-19, significantly outpacing government estimates.
Activity on the LME was mixed today, with nickel, aluminium and tin closing higher. Lead was subject to strong selling pressure, falling below the key support level of $1,760/t and closing at $1,756.50/t. Lead cash to 3-month spread tightened into -$20.75/t. Copper prices were softer, due to virus fears, closing at $6,528/t. Zinc was mainly range-bound but closed lower on the day at $2,326.50/t. Aluminium was supported above $1,760/t and closed near the day’s highs at $1,776/t. Nickel prices broke through $14,600/t resistance level to close at $14,644/t.
Oil futures rebounded from a three-week low, with WTI and Brent edging up to $39.48/bl and $41.56/bl respectively. Precious metals were all stronger today; at the time of writing, gold and silver trade at $1,915.59/oz and $24.36/oz.