US stocks pulled back from record highs in today's session as yields edged higher. The Atlanta Fed President suggested at the Federal Reserve need to see more months of employment growth in order to gain more confidence to start tapering their asset purchases. Inflation data later this week will give a good indication of the expectations that inflation has peaked are correct. The dollar index has firmed for the third day in a row, reaching 93.090 at the time of writing. In Europe, stocks climbed once again to record highs as earnings remain strong.
Sentiment on the LME was supportive today with all metals in the green. Nickel was bid to test appetite around $19,000/t, but failed into this level and closed at $18,952/t. Tin broke through $35,000/t but failed to take root above this level and closed at $34,082/t. Copper continues to consolidate and closed at $9,352/t, on the highs, but the cash-3month spread is in contango at -$26.25/t. Aluminium was well supported to $2,592/t but closed at $2,582.50/t. Zinc and lead were both bid today, closing at $3,000/t and $2,290.5/t respectively, the cash to 3month spread for lead is at $27.75/t back.
Oil prices gained ground today with Brent back above $71/bl at the time of writing at $71.03/bl, while WTI is at $68.68/bl. Precious metals prices were comparatively subdued, with gold trading at $1,732.04/oz and silver at $23.43/oz.
For more in-depth analysis of base and precious metals, please see our Quarterly Metals report.
Geordie Wilkes, Head of Research
