US stocks pushed higher yesterday, as the Fed officials downplayed the inflationary risks once again, easing concerns surrounding an earlier-than-expected interest rate hike. Fitch Ratings have stated that it would take about 18 months for the labour market to return to full steam. The dollar gained ground and the 10yr US Treasury yield continued the decline. Meanwhile, China’s economic momentum continued to ease in May, as surging raw material costs dampened business sentiment and property and car sales underperformed.
LME metal prices were on the front foot today, apart from zinc, which closed lower on the day at $2,968.50/t. Nickel prices were well supported and tested resistance at $17,350/t and closed lower at $17,288/t. Aluminium was well bid in the second half of the day, testing the resistance level of $2,400/t, and closed higher at $2,402/t. Copper prices remained supported above $9,900/t before closing at $9,979/t; the cash to 3-month spread widened out to -$17.75/t. SHF copper prices were range-bound, closing higher at CNY71,860/mt. Iron ore sold off to close at CNY1,101/mt.
Oil futures rebounded as US inventories shrank once again this week. WTI softened into $66.01/bl, while Brent gained ground to test $68.67/bl. Precious metals were also mixed, with gold closing higher at $1,903.50/oz, and silver fell to $27.85/oz.
All price data is from 26.05.2021 as of 17:30