US stocks jumped to an all-time high yesterday, powered by passing of the Biden’s stimulus bill in Congress as well as stabilising Treasury yields. The 10yr Treasury yield edged up to 1.545% but held below the recent peak and the dollar weakened. Meanwhile, the initial jobless claims fell by 42,000 in the week ending March 6th, more than forecast, to the lowest level since November 2020 as the country eased some business restrictions. The European stocks also rallied, as the ECB stated that it will ramp up the speed of its bond-buying to cap the yields.
LME metal prices were well bid today as risk appetite re-emerged. Copper climbed above $9,000/t, as China’s lending conditions were better-than-expected in February despite national holidays, and closed higher at $9,057.50/t. Aluminium prices were firmer, however lack of appetite for prices above $2,200/t, triggered a close at $2,178/t. Nickel prices broke through the resistance of $16,200/t and closed higher at $16,239/t. Zinc prices were also firmer and closed at $2,823/t; cash to 3m spreads widened out to -$28.25/t. Lead prices opened on the front foot today, testing the key resistance level of $1,980/t to close at $1,942.50/t.
Oil futures climbed for the second day on the expectations of rising consumption, with WTI and Brent edging up to $65.80/bl and $69.46/bl. Gold and silver were marginally lower, weakening to $1,724.91/oz and $26.12/oz respectively.
All price data is from 11.03.2021 as of 17:30