US stocks edged higher today on hopes of the stimulus bill to be reached before November 3rd, the election day. US housing starts increased by 1.9% m/m in September, indicating a continued housing demand up until the end of Q3. The dollar was weaker and the yield on 10yr US Treasuries strengthened up to 0.7773%. In Europe, Brexit trade talks are likely to continue at least into next week if the UK and EU fail to reach an agreement.
LME metal prices were well bid today as risk appetite re-emerged. Copper prices were firmer, however lack of appetite for prices above $6,950/t, triggered a close at $6,899/t. Nickel prices broke through the resistance of $16,000/t and closed higher at $16,023/t. Zinc prices were also firmer and closed at $2,529.50/t; cash to 3m spreads widened out to -$17.50/t. Lead prices opened on the front foot today, breaking through the key resistance level of $1,780/t to close at $1,765.50/t. Aluminium prices were down on the day, closing at $1,834.50/t.
Oil futures declined today as nations re-imposed the lockdown measures, daunting on demand. Russia said they will wait another month before making decisions on production cuts. At the time of writing, WTI and Brent trade at $40.72/bl and $42.59/bl. Gold and silver were both higher on the day, edging up to 1,911/55/oz and 24.78/oz respectively.
