US stocks climbed to record highs after the price data increased at a more moderate pace in July, diminishing the concerns surrounding earlier-than-expected pullback of the stimulus. The US CPI rose by 0.5% m/m in July, after growing by 0.9% in June, the lowest level in 6 months. The focus now shifts to the Fed to discuss the prospects of tapering the bond purchases given the softer price gain. The dollar sold off in the second half of the day, and the 10yr US Treasury yield softened to 1.3540%. Stocks in Asia continue to retreat as the number of COVID-19 cases in the region’s biggest economies continues to beat record highs.
LME metal prices were on the front foot yesterday, apart from copper, which closed lower on the day at $9,512/t. Zinc prices were well supported and tested resistance at $3,051/t, prices closed lower at $3,043.50/t. Nickel was well bid in the second half of the day, testing the resistance level of $19,385/t, before closing below at $19,368/t; the cash to 3-month spread tightened into -$24.00/t. Aluminium prices remained marginally supported above $2,580/t before closing at $2,585/t. Lead was also stronger, closing higher on the day at $2,318.50/t.
Oil futures fluctuated after the news that the US will urge OPEC to revive production more quickly. OPEC monthly oil report is out today. WTI and Brent declined marginally to $67.72/bl and $70.01/bl. Precious metals edged higher, with gold and silver gaining to $1,748.30/oz and $23.47/oz, respectively.
For more in-depth analysis of base and precious metals, please see our Quarterly Metals report.
All price data is from 11.08.2021 as of 17:30
