Global equities were well supported on Friday as investors closed the week in a more positive mindset. All major groups of the S&P 500 gained ground paring the week's losses. We expect cautiousness going into next week's Jackson Hole with risks still prevalent against the global economy, the Fed may delay tapering until the economy is on firmer ground. The dollar consolidated the previous day's gains but failed to hold onto the intraday highs. The Euro was stable against the dollar but remains at YTD lows, as cable found support at 1.36 but trades at 1.3617.
Sentiment on the LME was mixed on Friday, with tin and zinc suffering losses. As the dollar softened from the intraday highs, copper rallied after testing appetite below $8,900/t, to close at $9,037/t. The cash to 3-month spread widened to $6/t contango. Aluminium was steady on Friday but failed to break resistance at $2,580/t and closed at $2,546.5/t. The lead cash to 3-month spread softened marginally but is still at $196.5/t back, the 3-month closed at $2,251/t. Zinc failed above $3,003.50/t once again and closed on the backfoot at $2,928.5/t. Tin continued to slide and closed at $32,237/t. Nickel was marginally firmer and settled at $18,463/t.
Energy prices retreated on Friday as selling pressure continued, prompting Brent and WTI to trade at $65.8/bl and $63.00/bl at the time of writing. Gold found support and trades at $1,785.15/oz and silver at $23.20/oz.
Geordie Wilkes, Head of Research