US stocks declined further yesterday, as the tech share contraction gained pace. The US consumer prices rose by 0.8% m/m in April, the most since 2009 and above forecasts, adding concerns to inflationary pressures capping the economy’s longer-term performance. The dollar picked up higher, and the 10yr US Treasury yield surged to a two-week high of 1.6862%. The European shares remained elevated on optimism surrounding the lifting of lockdown restrictions. The UK economy grew faster than expected in March, at 2.1%, as the economy headed for a partial lift of lockdown restrictions; the quarterly growth still shrank by 1.5%.
Sentiment on the LME was weaker today, with only copper marginally higher. Aluminium was well supported today, however, lost ground in the second half of the day, closing above the new-found support level of $2,480/t at $2,480.50/t. Lead came under strong selling pressure, closing near the day’s lows at $2,187/t. Lead cash to 3-month spread widened to -$21.75/t. Tin and nickel remained mostly range, closing marginally lower on the day, at $29,660/t and $17,797/t, respectively. Copper was on course for another record however, closed below at $10,445.50/t.
Oil futures gained ground as continued US pipeline closures lead to fuel shortages. WTI and Brent picked up higher to $66.06/bl and $69.35/bl. Meanwhile, US average retail gasoline prices have risen above the 2014 highs of $3 per gallon. Precious metals were on the back foot, with gold and silver falling down to $1,822.37/oz and $27.23/oz, respectively.
All price data is from 12.05.2021 as of 17:30