US stocks edged higher yesterday on the back of positive economic data. US initial jobless claims fell to 310,00 in the week ending September 4th, the biggest weekly drop since June, a strong sign of labour market recovery. The Fed’s Beige Book showed that economic activity in the US moderated from early July through August as consumers became wary of the spread of the delta variant. The dollar and the 10yr US Treasury yield both softened. Meanwhile, the ECB decided to slow down the bond purchases marginally below the current EUR80bn a month programme, however, Lagarde insisted that it should not be viewed as a tapering measure.
LME metal prices were well bid yesterday, supported in part by China’s surge in factory-gate inflation. Copper prices were firmer; however, a lack of appetite for prices above $9,400/t triggered a close at $9,387.50/t. Nickel prices broke through the resistance of $20,100/t and closed higher at $20,190/t. Zinc prices were also firmer and closed at $3,075.50/t; cash to 3m spreads tightened up to -$14.25/t. Lead prices opened on the front foot yesterday, breaking through the key resistance level of $2,295/t to close at $2,298.50/t. Tin gained the most ground, closing at $33,300/t.
Oil continued to gain ground on the back of a decline of the US inventories in the wake of Hurricane Ida. WTI and Brent were mixed, trading at $69.36/bl and $72.57/bl. Gold and silver trended higher to $1,791.19/oz and $24.03/oz.
For more in-depth analysis of base and precious metals, please see our Quarterly Metals report.
All price data is from 09.09.2021 as of 17:30