US stocks fluctuated on Monday ahead of the busy week of corporate earnings results and the Fed’s policy updates. US new home sales fell to April 2020 lows unexpectedly, indicating a weaker demand against higher house prices. The dollar lost ground, and the 10yr US Treasury yield softened. The 10yr US real yield fell to a record low of -1.1%, as concerns over the outlook for economic growth continue to mount. Elsewhere, the trade tensions are on the rise, as China lashed out at US policies, declaring the relationship between two countries is in a stalemate. In Germany, business confidence fell in July, as supply bottlenecks and the resurgence of COVID-19 infections cloud the outlook.
LME metal prices were on the front foot yesterday, apart from lead, which closed lower on the day at $2,372.50/t. Zinc prices were well supported and tested resistance at $3,010/t and closed just off the highs at $3,011/t. Nickel was well bid in the second half of the day, testing the resistance level of $19,780/t before closing below at $19,717/t. Copper saw the strongest gains, breaking above $9,800/t before closing at $9,809.50/t; the cash to 3-month spread tightened to -$19.00/t. Likewise, SHFE copper prices strengthened, albeit only marginally, closing at CNY70,540/mt. Aluminium and tin were range-bound but closed higher on the day at $2,519/t and $34,785/t, respectively.
Oil futures slipped as the demand side concerns continue to weigh on investor expectations. WTI and Brent fell down to $71.60/bl and $73.96/bl, respectively. Precious metals were mixed once again, with gold closing marginally lower at $1,800.26/oz, while silver consolidated to $25.25/oz.
All price data is from 26.07.2021 as of 17:30
