US stocks tumbled today, with S&P heading for the biggest drop in seven weeks, as the number of COVID-19 cases across the country continues to rise. The VIX, index measuring equity volatility in the US, climbed to the highest level since June. The dollar strengthened up to 93.434 and the 10yr yield on US Treasuries weakened out to 0.7626%. In Europe, equity markets headed for a multi-month low as German Chancellor Angela Merkel agreed to implement a one-month partial lockdown to prevent the virus spread. China’s economic recovery pointed to be mixed in October, as small businesses turned more cautious while car sales increased.
Metal prices were weaker today due to the weakness in the macro, except for lead which broke through the resistance level of $1,805/t before closing lower at $1,793.50/t. Copper prices sold off to test appetite at $6,700/t, but support at that level triggered a close at $6,748/t. Aluminium saw the strongest selling today but was supported above $1,805/t and closed at $1,809.50/t. Nickel remained under pressure closing at $15,733/t, and the cash to 3-month spread tightened into -$15.00/t. Zinc tested the $2,590/t level in the first half of the day, however, closed near day’s low at $2,529/t. Iron ore has edged up closer to CNY790/mt, but closed lower at CNY774/mt.
Oil futures fell sharply on concerns of lockdowns adding uncertainty to an already-volatility demand. At the time of writing, WTI and Brent trade at $37.18/bl and $38.95/bl. Precious metals were all lower today, with gold and silver trading down to $z,991.16/oz and $23.38/oz respectively.