US stocks fluctuated today on lacklustre economic data. US core CPI was unchanged for the second month in January, increasing 1.4% y/y. Despite this lower figure, investors still worry that price pressures might accelerate once the Biden administration releases another round of stimulus checks and vaccinations spike might spur spending later on in the year. The dollar softened and the 10yr US Treasury yield dipped down to 1.1362% after lower-than-expected inflation expectations. The Fed Reserve Chain Powell will speak on a webinar tonight.
LME metal prices were on the front foot today, apart from lead, which closed lower on the day at $2,095.50/t. Zinc prices were well supported and tested resistance at $2,740/t and closed just off the highs at $2,725/t. Aluminium was well bid in the second half of the day, testing the resistance level of $2,084/t, before closing below at $2,079/t. Copper prices remained supported above $8,250/t, rallying up to an 8-year high of $8,327/t as factory gate prices in China rose for the first time in a year, before closing at $8,299.50/t; the cash to 3-month spread widened out to $5.00/t. SHF copper prices strengthened, closing at CNY60,050/mt. Nickel saw the biggest gains today, closing at $18,666/t.
Oil futures continue to climb tightening supplies. At the time of writing, WTI and Brent trade at $58.51/bl and $61.31/bl. Precious metals were mixed, with platinum rallying to a six-year high of $1,252/oz on tighter supply woes. Gold and silver were seen trading at $1,840.30/oz and $27.02/oz respectively.