US stocks edged higher to records on positive corporate earnings results, as Joe Biden swore to be the 46th president of the United States. On his first day, Biden has stated an array of changes to economic policy, covering immigration, household support, and environment. The rollout of the already-promised stimulus bill will be challenging as Yellen, who is to be confirmed as Treasury secretary tomorrow, is already facing a Republican resistance. The dollar weakened on the expectations of lower rates, and the 10yr US Treasury yield strengthened up to 1.0938%. Elsewhere, the UK is considering extending the furlough scheme support, which is due to expire in April, as lockdown restrictions continue to damage businesses and employment.
Metals on the LME extended their advance today amid a weaker dollar, with tin posting the biggest daily gain, up 2.36%, and closing at $21,633/t. Aluminium prices were firmer, breaking above $1,980/t to close at $1,980.50/t; cash to 3-month spread tightened to -$1.05/t. Nickel prices tested the $18,260/t resistance level and closed at $18,222/t. Copper was on the front foot, trading to $8,060/t, and closing at the day’s high at $8,044.50/t. Zinc prices firmed in the second half of the day, testing $2,730/t to close at $2,728/t. Iron ore prices were up on the day, closing at CNY1,051.50/mt.
Oil futures edged higher with a focus on stimulus; at the time of writing WTI and Brent trade at $53.37/bl and $56.34/bl. Gold rallied to a two-week high of $1,870/oz and silver is seen higher at $25.68/oz.