Stocks fluctuated today amid continued uncertainty surrounding the stimulus bill talks. The Fed’s Thomas Barkin stated that a surge in new daily coronavirus cases in the US has added uncertainty to the outlook and might discourage businesses from investment. The dollar declined to 93.319 and the yield on 10yr US Treasuries weakened out to 0.7173%. In the UK, the trade talks with the EU are likely to continue past Boris Johnson’s deadline of October 15, delaying the decision until EU summit ends. Russia approved the second COVID-19 vaccine for public use, President Putin stated in televised comments today.
Activity on the LME was mixed today with only aluminium and lead closing lower. Nickel continues to be well bid, but failed above $15,350/t and closed at $15,341/t. Copper was slightly firmer, supported by the strikes in Chile, and managed to close just above the support level at $6,716/t. Zinc and tin prices were marginally stronger on the day, closing on the front foot at $2,417/t and $18,300/t respectively. Aluminium edged lower down to the support level at $1,844/t and closed higher at $1,852/t; cash to 3-month spread widened out to -$15.00/t.
Oil futures advanced on dollar slide, with WTI and Brent edging up to $40.98/bl and $43.17/bl respectively. Precious metals finished the day on the front foot; at the time of writing, gold and silver trade at $1,906.15/oz and $24.37/oz.