US stock edged lower on Friday as the risk-on sentiment waned. US PPI rose by 8.3% in August, more than expected, a continued sign of high input costs for manufacturers. The dollar and the 10yr US Treasury yield were both stronger. Asian stocks climbed higher after China clarified their slowdown rather than a freeze of new game approvals. Elsewhere, Russia said that more tightening is possible after a smaller-than-expected rate hike in its latest meeting, as inflation reaches the levels last seen 5 years ago.
Another day of strong gains was seen on the LME market. Copper prices were firmer, however lack of appetite for prices above $9,700/t, triggered a close at $9,694.50/t. Nickel prices broke through the resistance of $20,200/t and closed higher at $20,392/t. Zinc prices were also firmer and closed at $3,119/t; cash to 3m spreads tightened up to -$10.10/t. Lead prices opened on the front foot, breaking through the key resistance level of $2,320/t to close at $2,318/t. Aluminium consolidated, closing at $2,924/t.
Oil futures rose after investors ignored China’s confirmation of releasing more crude from their strategic reserves. WTI and Brent consolidated into $69.79/bl and $72.95/bl. Precious metals were all weaker, with gold and silver falling to $1,792.95/oz and $23.89/oz.
For more in-depth analysis of base and precious metals, please see our Quarterly Metals report.
All price data is from 10.09.2021 as of 17:30