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US stocks sold off sharply on Monday as investors rushed to safe-haven assets, driven by the concerns surrounding the delta variant. The dollar rose, while the 10yr US Treasury yield fell to 1.1739%, the lowest level since February. Meanwhile, the UK fully reopened, despite the growing number of cases, as the government beliefs that the economy should learn how to live with the virus.

Metals on the LME came under heavy selling pressure yesterday, with nickel the worst affected. Protracted selling pressure caused nickel prices to find support at $18,400/t and close at $18,462/t. Aluminium was next in line as prices struggled above $2,500/t to close $2,425.50/t. Copper managed to find support at $9,130/t and closed at $9,222/t, with the cash to 3-month spread tightening in to -$33.50/t. Lead and zinc were also lower on the day, closing at $2,285/t and $2,977/t, respectively.

Oil futures plunged after the OPEC+ reached a compromise deal on Sunday, agreeing to add more supply to the market. WTI and Brent fell to $67.35/oz and $69.46/oz. Precious metals were all weaker despite strength seen in other safe havens, with gold and silver edging down to $1,808.03/oz and $25.10/oz.

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All price data is from 19.07.2021 as of 17:30


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