US stocks began the week on the back foot on concerns of the US stimulus package being delayed. The dollar strengthened, and the 10yr US Treasury yield weakened down to 1.0431%. The European shares were seen lower as investors weighed on consequences of tougher lockdown restrictions across the bloc. On the virus front, Moderna stated that its vaccine has proven to effective against two known variants of COVID-19. Meanwhile, the US surpassed 25m of cumulative cases or about 8% of the population.
Activity on the LME was mixed today, with copper, nickel and zinc closing lower. Tin continues to be well bid, but failed above $22,600/t and closed at $22,450/t. Aluminium was slightly firmer and managed to break above the $2,010/t level to close at $2,012/t. Lead and nickel prices were marginally softer on the day, closing on the back foot at $2,047/t and $18,250/t respectively. Copper edged lower down to the support level at $7,950/t and closed higher at $7,969/t; cash to 3-month spread tightened back to -$2.00/t.
Oil futures fluctuated on demand concerns after the uncertainty surrounding the release of the US stimulus bill. At the time of writing, WTI and Brent trade at $52.30/bl and $55.53/bl. Precious metals were softer, with gold and silver edging down to $1,854.90/oz and $25.38/oz respectively.
