US stocks were mostly lower yesterday as investors weighed on the prospects of smooth recovery out of the pandemic. The 10yr US Treasury yield fell for the second day in a row ahead of this week’s Treasury auction; the dollar strengthened. Likewise, the European shares slumped after Germany entered into another lockdown state over the Easter holidays. The ECB finally delivered on its promise to ramp up the speed of bond buying, as its purchases increased by $25.2bn last week, the most since December. The Asian stocks declined, with CSI 300 testing the 2015 lows once again amid concerns over earnings and valuations. Today marks the second day of congressional hearing, joined by Powell and Yellen, assessing the economic policy response to the pandemic.
Metals on the LME were broadly weaker today on the back of a stronger dollar, with aluminium losing the most ground. The metal dropped below the $2,240/t support level in the first half of the day, as China is considering selling about 0.5m MT from state reserves, to close at $2,219.50/t. Selling pressure caused copper to test appetite around $8,950/t but managed to close back above at $8,980/t. Nickel prices sold off sharply below $16,300/t in the second half of the day to close lower at $16,149/t; the cash to 3-month spread has tightened up to -$40.00/t. Lead breached support at $1,950/t before closing lower at $1,949/t. Zinc closed on the back foot as well at $2,838.50/t.
Oil futures sold off on concerns of an oversupplied market, with WTI and Brent falling down to $59.04/bl and $63.23/bl. Precious metals faced another day of heavy losses; gold and silver edged lower to $1,726.46/oz and $25.19/oz respectively.
All price data is from 23.03.2021 as of 17:30