US stocks started the week on the back foot, dropping from record highs, on the back of lacklustre investor appetite. Meanwhile, Democrats are aiming for a fast second impeachment of Donald Trump just as president-elect Joe Biden aims to step into the office. The dollar was supported above 90.400, and the 10yr US Treasury yields strengthened up to 1.1324%. Chinese stocks faced the fastest decline in more than three weeks amid valuation concerns as well as the new outbreak of COVID-19 cases near Beijing. Europe continues to tighten lockdown restrictions as the number of infections rises, just as the UK threatens more stringent measures across the country if people fail to follow the rules.
Metals on the LME were broadly weaker today on the back of stronger dollar, with nickel, once again, losing the most ground. The metal dropped below the $17,200/t support level to close at $17,086/t. Selling pressure caused copper to test appetite around $7,850/t, as it headed for the biggest two-day decline since March, but managed to close back above at $7,864/t. Lead prices found support below $1,980/t and closed at $1,966.50/t, the cash to 3-month spread has widened out to -$21.50/t. Aluminium tested support at $2,000/t before closing higher at $2,009.50/t. Zinc closed on the back foot as well at $2,767.50/t.
Oil futures edged lower today alongside equities amid waning buying pressure. At the time of writing WTI and Brent trend at $52.10/bl and $55.59/bl. Precious metals also took a breather today, with gold and silver seen trading at $1,848.31/oz and $25.20/oz respectively.
