US stocks continued to be well supported, heading for all-time highs amid positive corporate earnings. Investors are now more confident that the Fed will remain accommodative even as the growth levels come back to the pre-pandemic levels. Economists now expect the Fed to tighten bond-buying in Q4 2021. Meanwhile, in Russia, the central bank unexpectedly raised the interest rate by 50bps. From the economic front, the previously-owned US homes are now more expensive than new ones. The dollar was marginally higher and the 10yr Us Treasury yield was little changed. Elsewhere, Ifo business expectations in Germany unexpectedly became more pessimistic about the economic outlook.
LME base metals extended gains today, led by zinc and copper, which gained 2.63% and 2.14% on the day respectively. Copper rallied to test the $9,750/t level, the highest level in a decade, before closing higher at $9,751/t. SHFE copper was also higher on the day, closing at CNY70,360/mt, breaking contract highs. Nickel was well bid, edging up to the $16,680/t level, to close just below the day's highs at $16,666/t. Zinc gained the most ground, testing resistance at $2,920/t and closed at $2,915/t; the cash to 3-month spread widened out to -$14.50/t. Lead and tin prices were both higher today, closing at $2,078.50/t and $27,050/t respectively. Aluminium finished on the front foot, closing at $2,403.50/t.
Oil futures retreated on continued concerns of muted demand from India. WTI and Brent edged down lower $61.96/bl and $65.74/bl. Precious metals were all higher, with gold and silver strengthening up to $1,778.10/oz and $26.13/oz, respectively.
All price data is from 26.04.2021 as of 17:30
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