US stocks fell on the back of an impasse over the stimulus package, signalling slimmer chances of a deal. On the vaccine front, the FDA voted to approve the emergency authorisation for a Pfizer vaccine, and Hong Kong ordered 15m doses for distribution. Meanwhile, the US consumer sentiment rose to 91.8, the level last seen in March 2020 amid the COVID-19 vaccine prospects. Chinese stocks suffered their worst decline since September 2020, as risk-off sentiment triggered market losses. The dollar strengthened up to 90.985 and the US 10yr Treasury yield softened out to 0.8799%. The pound fell after Boris Johnson said the no-deal Brexit seems ‘very, very likely’.
LME sentiment was weak today as protracted selling pressure gripped the market due to stimulus deadlock and a supported US dollar. Zinc lost the most ground, after failing through the support at $2,800/t and closing at $2,795/t. Aluminium broke back below $2,030/t and found support at $2,015/t to close at $2,022.50/t. We saw protracted selling pressure cause the copper market to close below $7,800/t at $7,772.50/t; the cash to 3m spread has widened out to -$17.55/t. Lead and tin prices also closed lower today at $2,062.50/t and $19,425/t, respectively.
Oil momentum slowed down today, with WTI and Brent trading at $46.64/bl and $50.03/bl. Precious metals were marginally stronger; at the time of writing, gold and silver trade at $1,842.50/zo and $24.01/oz respectively.