US stocks rallied today on election outcome uncertainty, with S&P increasing the most since May 2020. While the outcome will depend on some more key states, investors are already pricing in Trump contesting the election result with the Supreme Court. There are also bets on Congressional gridlock, which would make the rollback of Trump’s taxes less likely. The dollar weakened and the 10yr yield on US Treasuries tumbled down to 0.7713%. The Fed will meet tonight to discuss the possibility of additional monetary support. US service industry expanded at the slowest pace in five months in October, as orders and employment cooled. Elsewhere, COVID-19 cases continue to rise, forcing the economies to implement additional lockdown measures.
Prices on the LME were supported today as risk appetite prompted the market. Lead prices traded up to $1,850/t, but resistance at this level triggered a close at $1,842/t. Lead cash to 3-months widened out into -$13.00/t. Zinc prices also strengthened today; prices closed near the day’s high at $2,593.50/t. Nickel was supported in the first half of the day, but edged lower down to close at $15,346/t. Copper and aluminium were range-bound, closing higher on the day at $6,837.50/t and $1,908.50/t respectively.
Oil futures erased losses today as the election outcome stretched on, and, at the time of writing, WTI and Brent trade at $38.87/bl and $41.05/bl. Precious metals were mixed, with gold and silver edging down lower to $1,898.62/oz and $23.94/oz respectively.