US stocks bounced back yesterday on the back of positive economic data. Inflation worries, however, continue to persist, with some companies warning that supply shortages may force them to raise prices. Meanwhile, the US Treasury kept its quarterly bond sale at a record size, as a means of funding stimulus spending. US service providers expanded at the second-fastest pace on record in April, at 62.7, however, cooled on a month-by-month basis. US private employers added the most jobs in seven months, confirming the stable recovery in the labour sector. The dollar was broadly positive, and the 10yr Treasury yield gained ground.
Activity on the LME was mixed today, with copper, lead and zinc closing lower. Nickel continues to be well bid, but failed above $18,035/t and closed at $17,896/t. Aluminium was slightly firmer and managed to break above the $2,440/t level to close at $2,444.50/t. Lead and zinc prices were marginally softer on the day, closing on the back foot at $2,175/t and $2,933/t respectively. Copper breached $10,000/t, the level last seen in March 2011, but then edged lower down to the support level at $9,990/t and closed at $9,949.50/t; cash to 3-month spread widened out to -$0.50/t.
Oil futures climbed with the US inventory decline signalling further demand recovery. WTI and Brent edged up to $66.12/bl and $69.42/bl. Precious metals held the decline as Yellen clarified her comments on borrowing costs and inflation; gold and silver traded at $$1,783.25/oz and $24.46/oz respectively.
All price data is from 05.05.2021 as of 17:30