US stocks continue to break new highs, with Dow Jones climbing above 30,000 for the first time ever. The president-elect Joe Biden begins transition into the office as Trump clears way. Additionally, Janet Yellen has been selected as Treasury secretary, highlighting Biden’s aim for more stimulus. US home prices surged the most on record in Q3, up 3.1% y/y, as record-low mortgages continued to fuel demand for housing. The dollar softened out to 92.297 and the 10yr yield on Treasuries strengthened up to 0.8816%. Elsewhere, Germany is discussing $23.7bn support for businesses affected by plans to extend a nationwide shutdown into December.
LME metal prices were well bid today as risk appetite re-emerged. Aluminium prices were firmer, however lack of appetite above $1,990/t, triggered a close at $1,986.50/t. Copper prices tested the resistance of $7,330/t and closed at $7,293/t. Nickel saw the biggest gains, trading to $16,250/t, and closing at the day’s high at $16,242/t; cash to 3-month spread tightened marginally to -$39.99/t. Zinc prices opened on the front foot today, testing the resistance level of $2,760/t to close at $2,757/t. Iron ore prices were lower on the day, closing at CNY875/mt.
Oil futures hit the highest level since March 2020, as Biden is given an all-clear for transitioning into the office. At the time of writing, WTI and Brent trade at $44.96/bl and $47.74/bl. Precious metals were mixed today, with gold up and silver trading down to $1,803.03/oz and $23.18/oz respectively.