US stocks declined as investors weighed on the impact of inflationary risks as well as the introduction of minimum corporate tax that would enable foreign nations to impose levies on American companies. Inflation concerns took hold once again after Yellen said on Sunday that a slightly higher interest rate environment would be beneficial. The dollar weakened and the 10yr US Treasury yield rose from the April lows to 1.5653%. Elsewhere, German manufacturers saw a decline in demand in April, signalling that supply shortages and growing price pressures are stalling manufacturing recovery.
Metals prices were weaker today due to inflationary risks, apart from lead and zinc that closed on the front foot at $2,153/t and $2,999.50/t, respectively. Copper prices softened to test appetite at $9,850/t, as shipments of unwrought copper products into China fell to a 3-month low, triggering a close at $9,900.50/t. Aluminium was also down on the day, closing at the day’s lows at $2,426/t; cash to 3-month spread tightened to -$5.24/t, the strongest since the beginning of May. Nickel remained under pressure, closing at $17,892/t. Tin tested the $30,400/t level and closed higher at $30,525/t.
Oil futures slipped as the rally cooled, with WTI failing to sustain gains above $70/bl; Brent futures softened into $71.55/bl. Precious metals were mostly higher, with gold and silver edging up to $1,894.30/oz and $27.90/oz respectively.
All price data is from 07.06.2021 as of 17:30