US stocks fell today, with S&P 500 extending its worst decline since March on the back of declining tech stock earnings, highlighting the cracks in the economic environment and valuations. US personal incomes increased in September by 0.9% m/m, more than expected, boosted by gains in employment. The dollar slipped and the 10yr yield on US Treasuries strengthened up to 0.8852%. The number of COVID-19 cases exceeded 45m globally, and the US set a new record high. Europe’s GDP grew by 12.7% in Q3, above forecasts. In China, the government granted more debt relief to poorer nations dealing the consequences of the pandemic.
Sentiment on the LME was weaker today, with only aluminium marginally higher. Copper was well supported today, however, lost ground in the second half of the day, closing above the new-found support level of $6,700/t at $6,718.50/t. Nickel came under strong selling pressure, closing near the day’s lows at $15,156/t. Nickel cash to 3-month spread widened to -$35.00/t contango. Lead and zinc remained mostly range, closing marginally lower on the day, at $1,820/t and $2,523/t respectively. Aluminium gained the most ground today, picking up to the $1,850/t resistance level to close $1,848.50/t.
Oil futures suffered another day of declines, with WTI and Brent edging down to $35.28/bl and $37.52/bl. Precious metals were mostly higher today, with gold and silver trading at $1,879.17/oz and $23.59/oz respectively.