US stocks rose yesterday on the back of positive economic data. US initial jobless claims posted a larger-than-expected decline, falling to 364,000 in the week ending June 26th, a fresh pandemic low as the labour market continues to recover. US manufacturing continued to expand in May, however at the slowest pace, and the material costs jumped to the highest level since the late 70s. Meanwhile, European factories are benefiting from the economic rebound, with manufacturers reporting the fastest pace of hiring in at least 24 years. US Mortgage rates fell below 3%, which is more likely to keep powering the housing rally. The dollar gained ground, and the 10yr US Treasury yield was at 1.4781%. The pound weakened after the BoE Governor urged policymakers not to overreact to rising inflationary pressures, as he believes them to be temporary.
Metals prices were weaker yesterday due to weaker-than-expected construction data and a stronger dollar, apart from tin that closed on the front foot at $31,294/t. Copper prices softened to test appetite at $9,316/t, but support at that level triggered a close at $9,322/t. Zinc saw the strongest selling today, closing at the day’s lows at $2,938.50/t; cash to 3-month spread widened out to -$16.50/t. Aluminium remained under pressure, closing at $2,512/t. Nickel tested the $18,000/t level and closed higher at $18,105/t.
Oil futures climbed with OPEC+ signalling a gradual supply hike; WTI and Brent picked up higher to test $76.22/oz and $76.74/bl. Precious metals were mixed, with gold and silver trading at $1,771.22/oz and $25.99/oz, respectively.
For more in-depth analysis of base and precious metals, please see our Quarterly Metals Report.
All price data is from 01.07.2021 as of 17:30
