US shares edged higher despite strong consumer inflation figures, with expectations of solid earnings supporting investor sentiment. Indeed, US CPI surged in June to the highest level of 5.4% y/y since 2008, above forecasts, as the economy continues to reopen. The dollar strengthened, while the 10yr US Treasury yield softened to 1.3594%. Meanwhile, the PBoC stated that the cut in RRR is not a means of monetary policy change, rather a “standard liquidity operation”, suggesting no change on policy. Chinese export growth accelerated in June, overcoming the port disruptions in Southern China. From the vaccine front, global vaccine jabs marked more than 3.4bn given out so far, with Europe vaccinating more than half of its population.
Sentiment on the LME was mixed yesterday. Aluminium was the big mover, climbing above the key resistance level of $2,530/t and closing at $2,535.50/t. Zinc fell in the second half of the day to test the $2,904/t level and closed on the front foot at $2,934.50/t. Lead softened yesterday after previous day gains; the market closed at $2,311/t; the cash to 3-month spread widened out to -$2.50/t. Copper prices were marginally stronger, as an appetite for prices caused a test of resistance at $9,500/t to close at $9,412.50/t. Tin closed at $32,381/t.
Oil futures were little changed as the growing number of COVID cases dimmed the demand outlook. WTI and Brent gained ground to $74.75/bl and $75.97/bl. Precious metals were mixed once again; gold edged higher to test $1,812.52/oz, and silver softened into $24.16/oz.
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All price data is from 13.07.2021 as of 17:30
