The US stocks gained yesterday as a dip in the Treasury yields provided some tailwinds to the gains. Inflation continues to be a key driver in driving the equity markets, exemplified by data published by the NABE that states that more than 60% say that inflation is a greater risk now than it has been in the last two decades. The 10yr Treasury yield softened, falling back below 1.70%; the dollar weakened. Germany is aiming to borrow $286bn more in 2021 to help mitigate the continued impact of the pandemic, whilst Merkel agrees to lockdown extensions in the country. In Turkey, the markets tumbled by 7.60% after the news of the central bank governor being replaced; the lira fell by 9.15% against the dollar.
Prices on the LME were stronger yesterday as risk appetite returned. Aluminium prices challenged resistance at $2,289/t and the prices closed near the day’s highs at $2,272/t. Zinc was the biggest winner as protracted buying pressure prompted a break of resistance at $2,860/t, and closed higher at $2,866/t. Nickel remained supported above $16,400/t, closing marginally higher on the day at $16,463/t; the cash to 3-month spread widened out to -$46.64/t. Copper was stronger closing on the front foot at $9,108.50/t. Elsewhere in the metals market, COMEX copper prices edged higher edging close to record highs and closed at $4.13/lb. SGX iron ore prices also improved and closed at $151.20/t.
Oil futures fluctuated as investors assessed the uneven demand outlook, with WTI and Brent seen at $61.20/bl and $64.23/bl. Precious metals were all weaker; gold and silver fell down to $1,739.64/oz and $25.72/oz respectively.
All price data is from 22.03.2021 as of 17:30