US stocks began the week on the back foot yesterday, as earnings reports drove the decline. The Fed’s Chair Powell stated that the US economy is poised for stronger growth thanks to rising vaccinations and policy support. The 10yr US Treasury yield strengthened up to 1.67% and the dollar retreated. From the vaccine front, Portugal which currently holds the current presidency of the EU urged to limit the vaccine jabs to those over the age of 60. In the meantime, the recovery in the US is accelerating as the number of vaccinated people continues to grow, while Europe is still behind. The US inflation is out today and is expected to rise by 2.5% y/y in March, versus 1.7% in February.
Sentiment on the LME was weak today as selling pressure was strong and prices slipped on the downside. Copper was softer and traded towards support at $8,800/t, but closed higher at $8,861/t. Nickel was also subject to strong selling pressure breaking through support at $16,300/t to close at $16,134/t; cash to 3-month tightened up to -$45.50/t. Zinc was weaker as well and broke support at $2,760/t, and closed lower at $2,758/t. Lead fell down to $1,960/t but closed higher in the second half of the day at $1,976/t. Aluminium was range-bound but closed lower at $2,262/t.
Oil futures rose on the back of near-term demand worries easing. WTI and Brent edged up to $59.67/bl and $63.26/bl. Precious metals softened, with gold and silver falling down to $1,731.37/oz and $24.80/oz respectively.
All price data is from 12.04.2021 as of 17:30