US stocks fluctuated yesterday as the debate between economic recovery and faster inflation once again took hold of the markets. US manufacturing activity expanded at the fastest level since 2007 in June. US new home sales, however, dropped unexpectedly in May as higher home prices continue to weigh on purchases. The dollar and the 10yr US Treasury yield fluctuated. The BoE interest rate decision is out today and is expected to remain unchanged. In the meantime, HIS Markit private business activity grew in May in the UK, and inflation pressures mounted as the country emerged from tough lockdown restrictions.
Increasing risk appetite across LME metals prompted another day of gains. Aluminium prices were well-supported, testing the resistance level at $2,440/t and closed at $2,439.50/t, the cash to 3-month spread has tightened into -$26.25/t. Copper trended higher to test the resistance at $9,500/t before closing below at $9,482.50/t. Nickel was next in line, breaching the $18,000/t level to close at $18,064/t. Zinc was stronger today, closing at $2,893/t. Lead prices were on the front foot in the second half of the day, closing at $2,192/t.
Oil futures continued to pare gains as US crude supplies declined for a fifth straight week. WTI and Brent traded at $73.71/bl and $75.50/bl. Precious metals were all higher, with gold and silver edging up to $1,786.30/oz and $26.12/oz respectively.
All price data is from 23.06.2021 as of 17:30