US stocks fluctuated once again as investor sentiment waned compared to the previous day. US states unemployment benefited dropped for the third straight week, another sign of recovery in the labour market. US PPI rose by more than expected in July, as higher commodity prices and supply bottlenecks continue to weigh on producers. The dollar strengthened marginally, and the 10yr US Treasury yield picked up to 1.3590%. Asian stock market declined after China stated that it plans to introduce greater business regulation for businesses in the coming years. Elsewhere, the UK economy grew by 1.0% in June, above market expectations, as the final round of lockdown restrictions was lifted by months end.
Sentiment on the LME has been predominantly negative, and prices slipped on the downside in the second half of the day; only nickel rallied higher to close at $19,678/t. Copper was weak and traded towards support at $9,450/t; the market closed at $9,467.50/t. Aluminium was also subject to moderate selling pressure testing the support at $2,570/t to close at $2,582.50/t. Zinc sold off and tested appetite around $2,990/t, support at this level prompted a close at $2,992.50/t; cash to 3-month spread widened out to -$11.35/t. Lead and tin closed lower on the day at $2,307/t and $35,270/t, respectively.
Oil futures remained broadly unchanged, with WTI and Brent edged marginally higher to $69.37/bl and $71.54/bl. Precious metals were also mixed, with gold and silver trading at $1,753.58/oz and $23.26/oz, respectively.
For more in-depth analysis of base and precious metals, please see our Quarterly Metals report.
All price data is from 12.08.2021 as of 17:30