US stocks dropped yesterday as elevated Treasury yields along with expectations of subsiding optimism continue to drive the markets. The dollar weakened and the 10yr US Treasury yield softened down to 1.4051%. The ECB slowed their emergency bond-buying pace last week, as pandemic purchases reached EUR16.9m – the least in four weeks, despite worries that the euro area might not be able to cope with high borrowing costs. Elsewhere, Germany’s unemployment figures rose unexpectedly in February, up to 2.75m, as lockdown measures in the country persist. The US Federal Reserve Beige Book is due to be released today.
LME metal prices were on the front foot today as stocks retreated. Aluminium prices tested $2,216/t in the second half of the day and closed just off the highs at $2,211.50/t. Copper was well bid, breaking above the resistance level of $9,200/t, and closing lower at $9,170.50/t. SHFE copper was also higher on the day, closing at CNY66,690/mt. Nickel was range bound, closing higher on the day at $18,672/t; cash to 3m spread tightened up to -$44.99/t. Zinc and tin consolidated, closing at $2,851/t and $24,300/t respectively.
Oil futures fell yesterday on expectations of increasing supply plans during the OPEC+ meeting this week. At the time of writing, WTI and Brent trade at $59.99/b and $62.95/bl. Gold and silver were marginally stronger, edging up to $1,733.23/oz and $26.64/oz respectively.
*All price data is from 02.03.2021 as of 17:30
