US equity markets started the week on the front foot as small-cap stocks were well bid and confidence returned to the market, following some jitters last week due to the rally in yields. The House of Representatives passed a $1.9trn, however, there are question marks over if the plan will reduce the slack in the labour market. The Fed later this week is clearly a key event for markets, as investors look for any indication of a change in policy direction. The ECB has started to slow the pace of their pandemic bond-buying to 12bn euros, down from 17.2bn the previous week. The dollar index has edged higher today, with cable failing into resistance at 1.40.
Sentiment on the LME was mixed today, tin prices are down 8% after failing above $25,000/t and closed at $23,460/t, the cash to 3-month spread stands at $279/t. Aluminium prices were also weaker today, after failing above $2,185/t and closing at $2,154.50/t. Copper failed to gain a footing above $9,200/t and closed at $9,044/t but the cash to 3-month spread remains backwardated at $45/t. Zinc and lead prices are were firmer today, closing at $2,804.50/t and $2,071/t, respectively. Nickel prices were also stronger after finding support at $18,500/t and closed at $18,682/t.
Energy markets gave back this morning's gains amid a stronger dollar and also the prospect of OPEC+ increasing supply in their meeting this week. Saudi continue to call for caution in the market. WTI and Brent prices trade at $61.42/bl and $64.61/t, respectively. Gold prices continued to struggle today, trading down to $1,728.90/oz at the time of writing and silver trades at $26.76/oz.
*All price data is from 26.02.2021 as of 17:30
*All price data is from 01.03.2021 as of 17:30