US stocks declined as the markets reopened on Tuesday, with investors weighing on the crude oil price turmoil. In Asia, stocks were mostly lower, and the focus shifted on the Chinese regulator ordering the removal of Didi’s platform from app stores not so long after its US listing. US service providers continued to grow in June, albeit at a lower-than-expected rate, as the measure of employment contracted. The dollar strengthened, and the 10yr US Treasury yield softened into February 2021 lows of 1.3582%. The Fed’s minutes are out today and may provide further context to Fed’s hawkish decision last month. Elsewhere, the UK has announced the easing of the remaining lockdown rules starting in mid-July in hopes of “learning to live with” the virus as the economy fully reopens. Meanwhile, Germany’s investor confidence eased in July as supply bottlenecks continue to weigh on manufacturing.
Activity on the LME was mostly down yesterday, as the dollar rallied, only with lead closing higher. Copper was subject to strong selling pressure, falling below the key support level of $9,400/t and closing at $9,312/t. Copper cash to 3-month spread widened out to -$31.50/t. Nickel and aluminium prices were softer, closing at $17,994/t and at $2,530/t, respectively. Tin was mainly range-bound, closing lower on the day at $31,669/t. Lead was supported above $2,280/t and closed at $2,293.50/t.
The crude prices edged up to 6-year highs before selling off later in the day, as OPEC+ failure to confirm the outlook raised concerns of oversupply. WTI and Brent traded at $73.66/bl and $74.86/bl. Precious metals were mixed once again, with gold holding up above $1,800/oz and silver down on the day to $26.28/oz.
For more in-depth analysis of base and precious metals, please see our Quarterly Metals Report.
All price data is from 06.07.2021 as of 17:30