US stocks fluctuated yesterday after another choppy corporate earnings release. The Fed kept the rates and bond purchases unchanged and said they see progress on tapering conditions, but still have ways to go. The dollar and the 10yr US Treasury yield both strengthened marginally. Chinese stocks rebounded after state media reassured investors about the stability of the market. Elsewhere, UK house prices eased unexpectedly in July, following a phase-out of a tax break on purchases.
Sentiment on the LME market was mixed. Copper prices were softer today, testing support at $9,650/t; however, the market held above this level to close at $9,686/t. Zinc prices tested the support level at $2,950/t, and the market closed at 2,979.50/t. Aluminium prices gained ground in the second half of the day, closing near the day’s high at $2,537/t, the spread tightened slightly to $30.00/t. Nickel and lead continued to move higher, closing at $19,543/t and $2,343.50/t, respectively.
Oil futures held their ground after declining US crude stockpiles signalled robust demand during the summer period. WTI and Brent edged up to $72.14/bl and $74.71/bl. Precious metals were all higher ahead of the Fed meeting, with gold and silver strengthening into $1,800.98/oz and $24.88/oz, respectively.
For more in-depth analysis of base and precious metals, please see our Quarterly Metals Report.
All price data is from 28.07.2021 as of 17:30