US stocks fluctuated near record highs yesterday, as markets remain cautious on the prospects of economic recovery. Not even a week after the passage of the US stimulus bill, Joe Biden is planning the first major tax hike since 1993 to help pay for the economic programmes in his next economic plan. The dollar strengthened and the 10yr US Treasury yield softened from the previous day peak to 1.6055%. Meanwhile, the UK 10yr inflation expectations climbed to 3.48%, the highest level since 2008, ahead of the BoE meeting this Thursday. The European stocks were mixed after Germany, Italy and France suspended the purchases of the AstraZeneca vaccine on possible adverse side effects. Chinese shares continued to decline on the back of the liquidity tightening fears.
Metals on the LME have traded higher today, apart from tin, on improving industrial conditions in China. Aluminium gained the most ground, testing the level at $2,235/t but closing below at $2,218/t. Cash to 3-month spread softened into $24.75/t contango. Next in line was zinc, closing just below the key resistance level of $2,860/t at $2,858.50/t. Copper briefly topped $9,200/t; however, resistance at that level triggered a close at $9,144.50/t. Lead prices remained marginally unchanged on the day, closing at $1,963.50/t. Tin was under pressure, closing below $25,400/t at $25,310/t.
Oil futures dropped, erasing previous gains, amid strengthening dollar. WTI Apr-May spread flipped in a contango, signalling oversupply. WTI and Brent dipped down to the lows of $64.13/bl and $67.82/bl. Precious metals were all seen higher, with gold and silver edging up to $1,730.20/oz and $26.18/oz respectively.
All price data is from 15.03.2021 as of 17:30
