US stocks rallied today, with the S&P 500 soaring to a new record high of 3,600, up 3.6% on the day, after positive news about a coronavirus vaccine developed by Pfizer. Similarly, credit markets picked up to pre-pandemic highs after the vaccine news along with a continued reaction to a Biden win in the US presidential election. The dollar strengthened to 92.833 and the 10yr yield on US Treasuries also picked up to 0.9508%. Elsewhere, the EU is set to trigger tariffs worth $4bn on the US goods this week as a retaliation to illegal subsidies to Boeing.
Sentiment on the LME has been predominantly negative, mostly a reaction to Joe Biden’s win in the US presidential election, and prices slipped on the downside. Copper was weak and traded towards support at $6,910/t, the market LME closed at $6,916/t, and prices have continued to fall after the close. Lead was the also subject to strong selling pressure breaking through support at $1,830/t to close at $1,833/t. Aluminium was also marginally weaker as well and tested appetite around $1,890/t, support at this level prompted a close at $1,893.50/t. Nickel and zinc closed higher on the day at $15,754/t and $2,641.50/t respectively.
Oil futures skyrocketed alongside stock markets, with WTI up 11% on the day. At the time of writing, WTI and Brent trade at $40.55/bl and $42.64/bl. Precious metals were all lower on the day, with gold and silver edging down to $1,863.46/oz and $23.80/oz.