US stocks were on the front foot today on the back of growing hopes of vaccine distribution and progress in the stimulus bill talks. The number of coronavirus cases continues to rise globally, and many countries are considering the introduction of stricter lockdown measures over the Christmas period. Moderna vaccine is found to be 94.1% effective at preventing COVID-19, ahead of the final FDA decision this Thursday; Europe hopes to begin distribution of vaccine by Christmas. Joe Biden has been confirmed as president-elect by the Electoral College today. The dollar softened, and the 10yr US Treasury yield strengthened up to 0.9080%. The pound rose to 1.3446 against the dollar amid hopes Brexit negotiations will reach a final deal soon.
LME metals have been mixed, with copper and lead higher on the day. Aluminium prices edged lower today, breaking below $2,035/t to close at $2,029.50/t, the cash to 3-month spread has widened out once again to -$16.00/t. Nickel was supported at $17,500/t and closed just above the day’s lows at $17,577/t. Lead was mostly range-bound and tested the resistance level at $2,055/t before closing at $2,052/t. Copper traded higher to the $7,830/t resistance level but closed on the back foot below at $7,782/t. Zinc was weaker today, closing at $2,814.50/t.
Oil futures rose today, supported by the progress in US stimulus bill talks. At the time of writing, WTI and Brent trade at $47.58/bl and $50.75/bl. Precious metals were all stronger today, with gold and silver edging up to $1,847.89/oz and $24.40/oz respectively.