EU stocks dropped lower today, as European cities, such as Paris and London, increased lockdown measures amid rising coronavirus cases. In the US, stocks were also down today on the back of an unexpected surge in initial jobless claims, up 53,000 w/w on the week ending on October 10th. The US mortgage rates have hit a record low; this is the 10th time this year that rates hit record lows, and should help fuel mortgage sales. The dollar strengthened into 93.830 and the 10yr yield on US Treasuries weakened out to 0.7190%. Elsewhere, the UK trade deal negotiations are entering the final day, with European officials growing uncertain around Boris Johnson’s willingness to continue the talks.
Metal prices were all stronger today, except for lead, which closed on the back foot at $1,772.50/t. Copper was firmer today, testing the resistance at $6,760/t before closing just near the day’s highs at $6,749/t. Nickel was also well bid, closing at $15,422/t; the cash to 3-month spread softened into -$50.00/t. Tin and zinc strengthened today, closing below resistance levels of $18,400/t and $2,450/t at $18,355/t and $2,425/t respectively. Aluminium remained range-bound, closing at $1,852/t.
Oil futures pared losses as US crude and fuel stock declined. At the time of writing, WTI and Brent trade at $40.14/bl and $42.40/bl respectively. Gold was on the front foot, trading up to $1,903.76/oz, while silver was weaker on the day, edging down to $24.12/oz.
