Global stocks pared losses yesterday, as Fed Chairman Jerome Powell signalled that the central banks will not pull back on their support for the US and will continue to buy bonds even as the outlook improves. US city home prices jumped at the fastest rate since 2014, as low mortgage rates continue to fuel demand. While 30yr Treasury yields continue to surge, the 10yr was seen lower yesterday, edging down to 1.3500%. The dollar strengthened up to 90.138. Elsewhere, the UK stocks jumped as the roadmap out of the pandemic has been revealed. Meanwhile, the UK unemployment rate rose to the highest level of 5.1% in almost 5 years, as the pandemic continues to take its toll.
Metals on the LME closed lower today apart from copper as weak equity data hit sentiment in the market. Aluminium prices sold off and tested appetite around $2,130/t and closed at $2,147/t. Zinc weakened the most down 1.70%, breaching support at $2,860/t to close at $2,854.50/t. Lead and nickel prices were also broke lower, closing at $2,121.50/t and $19,352/t respectively. Copper continued to rally, testing the resistance at $9,300/t, helped by a decline of the dollar, and closed lower at $9,206.50/t; the cash to 3-month spread widened out to $25.00/t, coming back to last week’s levels.
Oil futures fluctuated, pressured by a build-in inventory. At the time, WTI and Brent trading at $61.30/bl and $65.23/bl. Precious metals were all lower on the day, with gold and silver seen at $1,808.10/oz and $27.60/oz respectively.
*All price data is from 23.02.2021 as of 17:30