US stocks broke all-time highs once again following positive economic data releases. US GDP rose by 6.5% at an annualised rate in Q2, supported by strong consumer spending. US initial jobless claims declined by 24,000 in the week ending July 24th, while below expectations, continued declining unemployment points to a consistent labour market recovery. The US pending home sales declined unexpectedly in June, as high prices and low inventory discouraged prospective buyers. The dollar weakened, and the 10yr US Treasury yield held its ground at 1.25%. Elsewhere, German unemployment fell by more than expected in July, as businesses rebuilt their workforce to support strengthening demand.
LME metal prices were well bid yesterday, supported by strong economic performance in the US. Aluminium prices were firmer, however lack of appetite for prices above $2,595/t, the level last seen in May, triggered a close at $2,591/t. Copper prices broke through the resistance of $9,800/t and closed higher at $9,823.50/t. Zinc prices were also higher and closed at $2,998/t; cash to 3m spreads tightened up to -$6.60/t. Lead prices opened on the front foot, testing the resistance level of $2,370/t to close at $2,365.50/t. Nickel prices were higher on the day, closing at $19,835/t.
Oil futures gained ground on the back of stronger demand expectations. WTI and Brent strengthened into $73.28/bl and $75.65/bl. Precious metals were all stronger, with gold and silver edging up to $1,832.00/oz and $25.75/oz, respectively.
For more in-depth analysis of base and precious metals, please see our Quarterly Metals report.
All price data is from 29.07.2021 as of 17:30