US stocks extended to hit the record highs once again as investors weighed on the prospects of the new stimulus bill. US mortgage rates continue to fall, with the latest November figure closing at a record low 2.71%, fuelling for more housing demand. US ISM service industries expanded to 55.9 in November, however, still down month-on-month, as lockdown measures continue to slow down growth. US jobless rate fell by 75,000 in the week ending November 28, the first drop in three weeks. The dollar softened further and the 10yr yield on US Treasuries weakened out to 0.9145%. The pound edged up higher to 0.7418 to the dollar, the highest levels this year, as France threatened to veto the Brexit deal.
Activity on the LME was mixed today, on the back of weaker dollar, with only copper, tin, and zinc closing higher. Aluminium was subject to strong selling pressure, falling below the key support level of $2,020/t but closing higher at $2,028/t. Nickel prices were softer, closing at $15,954/t. Lead was supported in the first half of the day, before giving back its gains, closing on the back foot at $2,032.50/t. Lead cash to 3-month spread tightened marginally to -$14.50/t. Zinc was supported above $2,750/t and closed at $2,756/t. Copper prices remained range-bound closing marginally higher on the day at $7,674.50/t.
Oil futures remained broadly unchanged as the OPEC agreed to gradually decrease supply in February. At the time of writing, WTI and Brent trade at $45.35/bl and $48.43/bl. Precious metals were mixed once again, with gold up higher at $1,833.70/oz and silver down to $23.97/oz respectively.