US stocks gained on the back of a COVID-19 vaccine by Moderna, which was found to be 94.5% effective. US equity futures traded higher after advisers to President-elect Joe Biden said they opposed a nationwide shutdown despite surging virus cases. The dollar weakened out to 92.629 and the 10yr yield for US Treasuries strengthened up to 0.9029%. The pandemic continues to escalate in Europe and American coronavirus cases have exceeded 11 million. Germany stated that they will live with “considerable restrictions” for at least the next four to five months.
LME metal prices were on the front foot today. Aluminium prices were well supported above $1,940/t in the second half of the day and tested resistance at $1,958/t and closed just off the highs at $1,951/t. Copper was well bid, testing the resistance level of $7,180/t, before closing below at $7,108/t. SHF copper was higher on the day, closing at CNY53,070/mt, reaching record highs (Dec20). Nickel was range bound, closing higher on the day at $15,894/t; cash to 3m spread widened out to -$46.00/t. Zinc and tin consolidated, closing at $2,679.50/t and $18,755/t respectively.
Oil futures gained on vaccine hopes, with WTI and Brent edging up to $41.35/bl and $43.99/bl. Precious metals were all higher today, with gold and silver trading up to $1,892.77/oz and $24.75/oz respectively.