US stocks strengthened yesterday after a positive round of economic data. US manufacturing expanded at a better-than-expected pace of 59.9 in August, however, supply chain disruptions continued to weigh on the factories. US companies added fewer jobs than expected in August, suggesting a slowdown in labour market recovery. From the COVID-19 perspective, hospital admissions in the US fell for the first time since late June, a potential sign of tailing off in infections. The dollar sold off, and the 10yr US Treasury yield weakened.
Metals on the LME edged lower yesterday apart from lead, which closed higher at $2,273.50/t. Copper prices sold off and tested appetite around $9,300/t and closed at $9,335.50/t. Aluminium also weakened, testing support at $2,661/t to close at $2,690/t; the cash to 3-month spread widened out to $5.25/t, coming back to last week’s levels. Zinc and nickel prices also broke lower, closing at $2,981.50/t and $19,332/t, respectively.
Oil futures weakened as OPEC+ agreed to keep the existing supply plan unchanged, with gradual monthly production increases, with WTI and Brent softening into $68.15/bl and $71.21/bl. Precious metals steadied as the investors weighed on the economic data release; gold and silver gained ground to $1,816.25/oz and $24.24/oz, respectively.
For more in-depth analysis of base and precious metals, please see our Quarterly Metals report.
All price data is from 01.09.2021 as of 17:30