US stocks finished the week on the back foot, falling for the fourth straight day, in response to surprise hawkishness by the Fed. The dollar touched two-month highs, while the 10yr US Treasury yield softened 1.4566%; the yield spread between 5- and 30-yr Treasuries sold off to touch November lows. The pound tumbled to a 2-month low as a surge of COVID-19 cases dented confidence in the economy’s recovery. UK retail sales fell unexpectedly in May as the reopening of the service industry shifted consumer spending away from supermarkets. Meanwhile, Japan left the interest rates unchanged and extended support to the economy.
All metals on the LME closed lower today as the stronger dollar hit sentiment in the market. Copper prices sold off once again and tested appetite around $9,110/t and closed at $9,145.50/t. Tin weakened the most, down 3.73%, breaching support at $29,500/t to close higher at $29,862/t. Aluminium and nickel prices were also lower, closing at $2,385/t and $17,154/t respectively. Zinc closed at $2,822.50/t and cash to 3-month spread weakened slightly to -$13.90/t. Lead was the only one higher on the day, closing at $2,157.50/t.
Oil futures fell in the first half of the day, before recovering sharply recovering, with WTI and Brent edging up to $71.86/bl and $73.63/bl. Precious metals were mixed, with gold and silver trading $1,773.49/oz and $25.94/oz, respectively.
All price data is from 18.06.2021 as of 17:30