US stocks continued to decline on Wednesday as risk-on appetite in the markets subsided. US job openings jumped to a record high in July, highlighting the staffing shortages across the country. US annual home prices rose by a record of 18% y/y in July, supported by strong demand and limited inventories. The dollar gained ground, and the 10yr US Treasury yield moderated. European stocks declined drastically ahead of the ECB meeting today.
LME metal prices were on the front foot yesterday, apart from copper, which closed lower on the day at $9,249/t. Likewise, SHFE copper prices softened, breaking below the support level of CNY69,000/mt to close at CNY68,960/mt. Aluminium prices were well supported and tested resistance at $2,810/t and closed just off the highs at $2,794/t. Zinc was well bid in the second half of the day, testing the resistance level of $3,088/t, before closing below at $3,062/t; the cash to 3-month spread widened out to -$14.74/t. Nickel prices remained supported above $19,500/t before closing at $19,713/t. Lead was range-bound but closed higher on the day at $2,278.50/t.
Oil futures jumped as the impact of Hurricane Ida has made investors reassess the outlook for WTI supply from the US.WTI and Brent gained ground to $69.36/bl and $72.67/bl. Precious metals were all marginally softer, with gold and silver edging down to $1,792.66/oz and $24.03/oz, respectively.
For more in-depth analysis of base and precious metals, please see our Quarterly Metals report.
All price data is from 08.09.2021 as of 17:30