US stocks gained yesterday despite climbing Treasury yields, as investors favoured equity markets once again. The passing of the $1.9tr stimulus bill added to the rally. The dollar strengthened, and the 10yr US Treasury yield jumped to 1.6%. In the meantime, Treasury Secretary Janet Yellen dismissed fears that the stimulus package would cause inflation problems, stating that the inflation started on a low base from the beginning of the pandemic. Meanwhile, Chinese stocks corrected, with CSI 300 falling by more than 4.5% during the day on concerns about liquidity conditions. Chinese yuan slid to the lowest level since the end of December.
Activity on the LME was mixed today, with zinc and copper closing higher. Aluminium was subject to selling pressure, falling below the key support level of $2,180/t and closing at $2,171/t. Aluminium cash to 3-month spread widened out to -$9.25/t. Nickel and lead prices were softer, closing at $16,340/t and at $1,978.50/t respectively. Tin was the strongest seller, closing at $24,325/t. Copper was supported above $8,900/t and closed at $8,998.50/t. Iron ore prices softened to close at CNY1,145.50/mt, falling from record highs.
The oil futures soared, with Brent briefly trading at $70/bl, before falling down to $68.20/bl. The WTI reached $65.01/oz. Precious metals were mixed, with gold and silver falling down to $1,680.59/oz and $25.19/oz respectively.
All price data is from 08.03.2021 as of 17:30
