US stocks gained ground yesterday, with tech shares leading the way, as inflation concerns eased. Chicago Fed data showed that the US economic activity slowed down in April, undermining all the recent economic improvements. Meanwhile, the Fed said inflation pressures are likely to ease at the start of 2022. The dollar softened and the 10yr US Treasury yield weakened down to 1.6046%.
Activity on the LME was mixed today, with lead, zinc, and tin closing lower. Nickel was well bid but failed above $17,130/t to close at $17,118/t. Aluminium was slightly firmer and managed to close just off the day’s highs at $2,387/t. Copper prices were range-bound but closed on the front foot at $9,947/t. Conversely, tin was also range-bound but closed lower on the day at $29,465/t. Lead tested the support level at $2,140/t but closed higher at $2,141.50/t. Most spreads have widened, with only nickel cash to 3-month spread tightening to -$38.50/t. Iron ore futures sunk as China stepped up the fight against the growing commodity prices; the metals closed at CNY1,171/mt.
Oil futures extended gains, with Iran stating that gaps remain in negotiations until the deal is reached. WTI and Brent edged up to $65.46/bl and $68.11/bl. Precious metals were mostly higher, with gold and silver prices increasing up to $1,883.74/oz and $27.73/oz respectively.
All price data is from 24.05.2021 as of 17:30