US stocks started the week on the front foot ,with Nasdaq climbing to the levels seen in early September, supported by technology firm rally once again. Negotiations around the stimulus bill are to continue with Democrats this week. The dollar strengthened into 93.093 and the 10yr yield on US Treasures picked up to 0.7737%. China has banned Australian coal purchases as political relationship between two countries sours. The yuan weakened after the central bank took measures to control the local currency rally. In the UK, Boris Johnson set out a deadline on October 15 for the outline of the trade deal with the EU.
Activity on the LME was mixed today with zinc, lead and aluminium closing higher. Nickel was subject to selling pressure in the second half of the day, falling below the support level of $15,200/t and closing at $15,162/t. Tin prices were softer, closing at $18,245/t. Copper gave back its recent gains, closing on the back foot at $6,737.50/t; cash to 3-month spread widened into -$1.00/t. Aluminium edged higher today to test $1,855/t, the level last seen on July 2019 on optimism over the outlook in China, before closing higher at $1,855.50/t. Lead prices were higher on the day, closing at $1,845.50/t. Iron ore has lost ground today, closing at CNY826/mt.
Oil futures subsided from last week’s highs, as the hurricane destruction fears subsided. At the time of writing, WTI and Brent trade at $39.36/bl and $41.46/bl. Precious metal slid on dollar gains today, with gold and silver edging down to $1,923.79/oz and $25.08/oz.