The US stocks continued to fall as a renewed surge of Treasury volatility spurred the yields yesterday. The 10yr US Treasury yield approached 1.5%, and bonds now price the highest 5yr inflation expectations since 2008. The dollar strengthened marginally. American services providers slowed to a nine-month low in February, when severe winter weather gripped much of the nation and limited activity. Meanwhile, the number of employees at US businesses rose by less than expected in February, pointing to a slow labour market recovery despite the falling number of infections.
Metals on the LME came under heavy selling pressure today, with nickel the worst affected. Protracted selling pressure caused prices to fall by 7.00% on the day, as Russia, the world’s biggest refined metal producer, reported progress in restoring the suspended mine; the metal found support at $17,200/t and close at $17,417/t. Zinc was next in line as prices struggled above $2,860/t to close at $2,787/t. Aluminium managed to find support at $2,190/t and closed at $2,200/t, with the cash to 3-month spread widened out to -$3.50/t. Copper was marginally lower on the day, but was supported above $9,100/t and closing at $9,101.50/t. Lead was weaker as well today closing at $2,051/t.
Oil futures continued to rise ahead of the OPEC+ meeting today. At the time of writing, WTI and Brent trade at $61.83/bl and $64.69/bl. Precious metals were all lower yesterday, with gold and silver falling down to $1,717.58/oz and $26.35/oz respectively.
*All price data is from 03.03.2021 as of 17:30
