US stocks gained ground as another round of corporate earnings results supported risk-on sentiment. The ADP employment report showed that gains were softer-than-expected in July, but a record expansion was seen in the services industry. The initial jobless claims in the US were fell for the second straight week, down to 385,000 in the week ending July 31. Meanwhile, the US trade deficit widened to a record level in June, as importers rushed to meet business investment and spending. The dollar softened, and the 10yr US Treasury yield held its ground at 1.20%. The pound picked up during the day after the BoE left its interest rates unchanged.
Metals markets were mostly higher yesterday, with only lead down on the day. Zinc rallied up in the second half of the day to $3,030/t; the metal closed at $3,028.50/t. Aluminium struggled to gain a footing above the $2,595/t but closed higher on the day at $2,588/t. Nickel prices gained ground, with the market breaking above $19,400/t to close at $19,472/t; the spread widened and settled at -$11.75/t. Tin was range-bound and closed higher on the day at $34,625/t. Lead was weaker and failed above $2,390/t in the second half of the day, causing a close at $2,362/t.
Oil pared gains after the three consecutive days fall. WTI and Brent increased up to $68.94/bl and $71.14/bl. Precious metals softened, with gold and silver falling into $1,805.07/oz and $25.26/oz.
For more in-depth analysis of base and precious metals, please see our Quarterly Metals report.
All price data is from 05.08.2021 as of 17:30