US stocks surged yesterday; Nasdaq 100, in particular, gained 3.50% over the day, powered by investors’ dip-buying. US Treasury yields sank, with the 10yr yield falling back to 1.55%; the dollar weakened. In the meantime, the treasury traders are awaiting the US debt auctions in the coming days to bring in a total of $120bn into the economy; the sales will test the appetite for the debt once more after a poorly bid auction last month. Meanwhile, the ECB has stepped up the pace of emergency bond-buying last week, with gross purchases totalling $21.6bn in the week ending March 5, on the back of rising yields. The US consumer price index is out today and is forecast to rise at 0.4% m/m, vs 0.3% increase seen in January.
Activity on the LME was mostly down today, despite a correction in the dollar, only with tin closing higher. Copper was subject to strong selling pressure, falling below the key support level of $8,800/t and closing at $8,779.50/t. Copper cash to 3-month spread widened out to $17.00/t. Nickel and aluminium prices were softer, closing at $16,082/t and at $2,168.50/t respectively. Zinc was mainly range-bound closing lower on the day at $2,777.50/t. Tin was supported above $24,200/t and closed at $24,435/t.
A spike in the oil market subsided, and the futures prices fell to $64.22/bl and $67.72/bl. The precious metals were mixed, with gold and silver rallying up to $1,715.44/oz and $25.95/oz respectively.
All price data is from 09.03.2021 as of 17:30