US stocks pushed higher yesterday as the number of COVID-19 cases continues to spike across the world. US homebuilder confidence stabilised in May despite rising construction costs and lack of materials. Meanwhile, the prospect of passing Biden’s infrastructure bill rise as the GOP prepare the offer. The dollar fell, and the 10yr US Treasury yields 1.6369%. Elsewhere, Chinese industrial output and retail sales rose by 9.8% y/y and 17.7% y/y respectively in April, both below forecasts, highlighting continued performance slowdown in the recent months.
LME metal prices were on the front foot yesterday, with zinc paving the way, closing higher on the day at $3,014/t. Aluminium prices were well supported and tested resistance at $2,500/t and closed lower at $2,499/t. Copper was well bid in the second half of the day, testing the resistance level of $10,388/t before closing below at $10,373/t; the cash to 3-month spread weakened to -$28.25/t. SHFE copper prices, however, lost footing, closing at CNY11,597/mt. Lead prices remained supported above $2,180/t before closing at $2,207.50/t. Iron ore rallied in the first half of the day and closed higher on the day at CNY207.53/mt.
Oil futures climbed as investors shift their focus on the summer demand recovery. WTI and Brent gained ground to $66.06/bl and $69.32/bl. Gold climbed to the highest level since February, up to $1,866.38/oz. Silver traded at $28.14/oz.
All price data is from 17.05.2021 as of 17:30