US stocks declined today, with S&P heading for its biggest decline in a month, as rising number of cases threaten the case for economic recovery. Indeed, in the US, the number of daily new cases reached record highs. In the White House, Trump said that he cannot accept parts of the Democrat’s stimulus bill, dimming prospects for aid before the presidential election. US home sales fell 3.5% m/m in September, suggesting that demand is being restrained by low inventory levels while mortgage rates remain at record lows. The dollar edged up to 92.978 and the 10yr yield on US Treasuries fell down to 0.7977%.
Sentiment on the LME was weak today as selling pressure was strong and prices slipped on the downside. Copper was softer and traded towards support at $6,750/t, but closed higher at $6,781/t; prices have continued to fall after the close. Aluminium was the also subject to strong selling pressure breaking through support at $1,828/t to close at $1,827.50/t; cash to 3-month widened out to -$13.94/t. Zinc was weaker as well and tested appetite around $2,520/t, support at this level prompted a close at $2,539.50/t. Nickel fell down $15,400/t, but closed higher in the second half of the day at $15,657/t. Lead closed lower at $1,780.50/t.
Oil futures slumped today on the back of rising number of infections. At the time of writing, WTI and Brent trade at $38.51/bl and $40.42/bl. Precious metals were little changed, with gold and silver trade at $1,904.94/oz and $24.40/oz respectively.