US stocks edged higher on Monday after an upbeat corporate earnings release. IHS manufacturing PMI softened in the US in July, weaker than expected; it has also slipped in China. Likewise, Europe’s performance softened, but factories are hiring new workers at a record pace to keep up with a strong order demand. The US Senate is poised to pass the $550bn infrastructure package this week. The dollar softened marginally, and the 10yr US Treasury yield fell to 1.1591% lows seen mid-July.
LME metals have been mixed, with copper and nickel lower on the day. Aluminium prices edged higher yesterday, supported above $2,610/t to close at $2,615/t, the cash to 3-month spread has widened out to $4.00/t. Zinc traded higher to close on the front foot at $3,050.50/t. Lead was also stronger, closing at $2,402/t. Nickel was well bid for the majority of the day, testing $19,700/t but closed lower at $19,516/t. Copper sold off in the second half of the day and broke through the support level at $9,750/t before closing at $9,700.50/t.
Oil futures retreated as the tensions between Iran and the US intensified. WTI and Brent sold off to test $71.06/bl and $72.79/bl. Precious metals were mixed, with gold and silver trading at $1,814.92/oz and $25.43/oz, respectively.
For more in-depth analysis of base and precious metals, please see our Quarterly Metals report.
All price data is from 02.08.2021 as of 17:30