Last week ended on the back foot, as tech companies dragged down the US stocks. The US jobs data soared in February, above estimates, adding to anxieties in regards to fast economic recovery, and, in turn, inflation. The unemployment level dipped to 6.2%. In the meantime, Biden’s stimulus package negotiations are facing additional hurdles, as Republicans attempt rein in the package, extending the timetable for passage. The dollar strengthened and the 10yr US Treasury yield weakened down to 1.5557%. Elsewhere, Chinese tech stocks dropped by 21% in two weeks on yield concerns.
LME metal prices rebounded on Friday, apart from lead, which closed lower on the day at $2,002/t. Zinc prices were well supported and tested resistance at $2,780/t and closed just off the highs at $2,773.50/t. Copper was well bid in the second half of the day, testing the resistance level of $9,000/t, before closing below at $8,895.50/t. Aluminium prices remained supported above $2,140/t before closing at $2,176/t; the cash to 3-month spread tightened to $2.00/t. SHFE aluminium prices, however, softened, closing at CNY17,230/mt. Nickel and zinc were range-bound but closed higher on the day at $16,425/t and $2,773.50/t respectively.
Oil futures soared once again after the OPEC+ decision to keep supply limited. Both the WTI and Brent reached the two-year highs of $66.00/bl and $69.00/bl. Precious metals were mixed, with gold and silver at $1,702.50/oz and $25.14/oz respectively.
All price data is from 05.03.2021 as of 17:30