US stocks gained ground while European stocks hit record highs on the back of positive corporate earnings report. US household debt rose at the fastest pace since 2013 in Q2, driven by the mortgage boom. The dollar was little changed, while the 10yr US Treasury yield fell to test 1.1475% once again. From the Fed, Governor Waller stated that he would back the tapering announcement in September if the labour market continued to recover.
Metal on the LME sold off yesterday, with copper suffering another day of losses, closing at $9,541.50/t. Aluminium prices sold off to test appetite at $2,583/t, but support at that level triggered a close at $2,586/t. Nickel lost the ground, closing at the day’s lows at $19,388/t. Zinc remained under pressure, especially in the second half of today, selling off to close at $2,969.50/t. Lead tested the $2,370/t level to close higher at $2,398/t; cash to 3-month spread tightened up to $14.74/t.
A decline in oil futures continued to deepen yesterday, supported by the muted demand outlook. WTI and Brent edged lower to $70.80/bl and $72.61/bl. Precious metals were mostly lower, only with silver edging higher to $25.52/oz; gold fell to $1,810.38/oz.
For more in-depth analysis of base and precious metals, please see our Quarterly Metals report.
All price data is from 03.08.2021 as of 17:30