US stocks picked up higher as softer commodity prices helped ease inflation concerns. US retail sales remained unchanged month-on-month in April at 10.7%, following a sharp acceleration in the prior months. US manufacturing output rose in April, slightly above forecast, highlighting further improvement in manufacturing activity. Meanwhile, US consumer sentiment weakened unexpectedly in early May as inflation concerns continue to mount. The dollar weakened and the 10yr US Treasury yield weakened to 1.6403%.
LME metal prices were on the front foot today, apart from aluminium and copper, which closed lower on the day at $2,463/t and $10,240.50/t respectively. Nickel prices were well supported and tested resistance at $17,600/t and closed lower at $17,544/t. Lead was well bid in the second half of the day, testing the resistance level of $2,168/t, before closing below at $2,155/t; the cash to 3-month spread tightened up to -$17.20/t. Zinc prices remained supported above $2,900/t before closing at $2,938/t. Iron ore futures continued to fall, as China warned about a ramp-up in efforts to control the surge in prices, closing at $201.74/mt.
Oil erased earlier gains, closing the week on the back foot; WTI and Brent still closed earlier on the day at $65.13/bl and $68.46/bl. Precious metals gained ground, with gold and silver increasing to $1,838.90/oz and $27.35/oz respectively.
All price data is from 14.05.2021 as of 17:30