US stocks edged lower ahead of the talks between Democrats and the White House regarding the spending bill. US homebuilder confidence picked up in October to all-time highs as low interest rates continued to fuel demand. The dollar softened out to 93.226 and the yield on 10yr US Treasuries picked up to 0.7623%. Stocks in Asia strengthened as China showed signs of continued economic recovery, with GDP growth of 4.9% in Q3, up 1.7bps from the previous quarter. In Europe, Italy’s coronavirus-related infections increased to a new daily record. Worldwide, the cases topped 40m. The pound jumped by the most in 2 months as British officials signalled that they are ready to rewrite the lawbreaking Brexit bill to get the EU deal.
LME metal prices were on the front foot today, apart from aluminium, which closed lower on the day at $1,853.50/t. SHF aluminium prices (Nov20 contract), however, strengthened, breaking the record highs to close at CNY14,835/mt. Zinc prices were well supported and tested resistance at $2,500/t and closed just off the highs at $2,491/t. Copper was well bid in the second half of the day, testing the resistance level of $6,810/t, before closing below at $6,779.50/t; the cash to 3-month spread widened out to -$19.00/t. Tin prices remained supported above $18,600/t before closing at $18,640/t. Nickel and lead were range-bound but closed higher on the day at $15,684/t and $1,759/t respectively.
Oil futures slipped today ahead of the OPEC+ meeting. At the time of writing, WTI and Brent trade at $41.07/bl and $42.95/bl. Precious metals were mostly stronger, with silver and gold picking up to $23.61/oz and $1,908.07/oz respectively.