US and European stocks fell today as investor sentiment soured. Johnson & Johnson has paused its study of coronavirus vaccine due to an unexplained illness with one of the participants. In its latest report, the International Monetary Fund has warned that the global economy still faces uneven recovery until the spread of infections is under control. It expects a 4.4% contraction in 2020, up from a revised 5.2% fall in June. In the US, core CPI measure rose by 0.2% m/m in September, the slowest pace in four months. The dollar strengthened up to 93.513 and the 10yr yield on US Treasuries weakened out to 0.7338%.
Metals prices were weaker today due to a potential setback in coronavirus vaccine development. Copper prices sold off to test appetite at $6,660/t, despite rising import levels of copper in China, but support at that level triggered a close at $6,692/t. Lead saw the strongest selling today, down 2.38%, closing at the day’s lows at $1,801.50/t; cash to 3-month spread widened out -$12.90/t. Aluminium remained under pressure, closing at $1,858/t. Nickel tested the $15,035/t level in the second half of the day and closed near day’s lows at $15,040/t.
Oil futures pared moderate gains today on the back of robust crude import levels in China. At the time of writing, WTI and Brent trade at $40.30/bl and $42.45/bl respectively. Precious metals were on the back foot today, with gold and silver trading down to $1,895.56/oz and $24.21/oz.