US stocks softened on the back of weaker economic performance in China, and the Fed’s persistent dovishness. China’s GDP expanded at 7.9% y/y in Q2, albeit at a slower rate than in Q1, in line with expectations, despite a pickup in consumer spending. US initial jobless claims fell to 360,000 in the week ending July 10th, consistent with the trend we have seen during the economic recovery. US factory output declined unexpectedly in June as continued supply shortages yielded higher material costs. Meanwhile, NY state manufacturing advanced to record highs in July, thanks to the strongest orders and shipments, with selling prices rising to an unprecedented level. The dollar gained ground and the 10yr US Treasury yield softened.
Activity on the LME was mostly higher yesterday, with aluminium closing lower on the day at $2,518/t. Copper prices were well supported in the second half of the day and tested resistance at $9,500/t to close just off the highs at $9,486.50/t. Nickel was well bid, testing the resistance level of $18,800/t, before closing below at $18,768/t. Nickel cash to 3-months spread tightened up to -$5.00/t. Likewise, zinc and lead were on the front foot, closing at $2,968.50/t and $2,329.50/t, respectively.
Oil futures declined on rising oil inventories and a potential OPEC+ agreement to increase supply. WTI and Brent softened into $72.83/bl and $74.45/bl. Precious metals were marginally softer, with gold and silver falling to $1,825.90/oz and $26.23/oz.
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All price data is from 15.07.2021 as of 17:30