US stocks fell after the Fed suggested rates could rise by the end of 2022. US companies added fewer jobs than expected in July, an indication of persistent hurdles to the labour sector recovery. On the other hand, the US service industry expanded at a record pace of 64.1 in July, as new orders and employment improved. The dollar strengthened after initial weakness, and the 10yr US Treasury yield touched 1.13% before coming back to 1.2%. The BoE is expected to keep the interest rates and the bond-buying programme unchanged in today’s statement.
Metals on the LME closed lower yesterday apart from zinc, as weak equity data hit sentiment in the market. Aluminium prices softened and tested appetite around $2,562/t and closed at $2,566.50/t. Copper weakened marginally, breaching support at $9,500/t to close at $9,466/t. Lead and nickel prices also broke lower, closing at $2,380/t and $19,243/t, respectively. Zinc gained ground marginally, testing the resistance at $2,980/t and closed lower at $2,973.50/t; the cash to 3-month spread tightened to -$9.05/t.
Oil futures fell for the third straight day as the COVID-19 outbreak in China threatens demand outlook once again. WTI and Brent sold off to $68.50/bl and $70.75/bl. Precious metals continued the decline, only with gold edging higher to $1,811.45/oz, whereas silver fell to $25.41/oz.
For more in-depth analysis of base and precious metals, please see our Quarterly Metals report.
All price data is from 04.08.2021 as of 17:30