US stocks edged higher today, driven by the tech, as the hopes around the stimulus package grow. Indeed, negotiators are working on a $908bn pandemic relief package that will satisfy both the Republicans and the Democrats to be released before the end of the year. The US announced sanctions against a group of Chinese officials over the situation in Hong Kong. The dollar was unchanged and the 10yr yield on US Treasuries weakened out to 0.9261%. The pound fell to 0.7487 to the dollar on the back of once-again collapsing Brexit talks.
Activity on the LME was mixed today with lead, tin and zinc closing higher on the day. Lead rallied to the $2,080/t resistance level in the second half of the day; however, failed above that level and closed at $2,076/t. Zinc was also firmer and managed to close just off the day’s highs of $2,800/t at $2,786.50/t. Copper and aluminium prices were subject to strong selling pressure, closing on the back foot at $7,710/t and $2,017/t respectively. Nickel prices were marginally weaker, supported above the $16,300/t level and closing at $16,373/t; cash to 3-month spread softened into -$55.00/t. Iron ore picked up to record highs as China imported record amount in November; the metal closed at CNY903/mt.
Oil futures pared losses as attention turned to supply concerns alongside near-term demand. At the time of writing, WTI and Brent trade at $45.99/bl and $49.04/bl. Precious metals were seen trading higher on the back of heightened uncertainty, with gold and silver edging higher to $1,864.30/oz and $24.61/oz.