Stocks across the globe softened yesterday after data from China was softer than expectations and the rapid advance of the Taliban's territorial advance in Afghanistan. President Biden is due to speak on the matter. Bonds rallied today as a result but the dollar consolidated losses on Friday. Empire manufacturing in the US was weaker than expected. European stocks also declined today, and we have seen very low volumes after the 30-day moving average volume declined to levels last seen in 2001 and 2002.
Sentiment on the LME was mixed yesterday. Copper prices declined after economic data from China disappointed, causing a test of appetite below $9,400/t and prices closed on the back foot at 9,442/t. Nickel was also weaker today, and selling pressure prompted a test of support at $19,460/t, this level held firm and the market closed at $19,510/t. Zinc buckled to test support at $3,000/t but recovered to close at $3,031/t, whereas lead closed at $2,311/t down $22.50/t. Tin was well supported at $35,100/t and closed at $35,680/t. Aluminium gained a footing above $2,600/t and closed at $2,602/t.
Energy prices sold off this morning with Brent breaking through the supportive 100 DMA, but appetite for prices below this level prompted a partial recovery and Brent traded at $68.95/bl with WTI at $67.73/bl at the time of writing. Precious metals edged higher today and trade at $1,786.35/oz with silver at $23.81/oz.
Geordie Wilkes, Head of Research