US stocks fluctuated on Monday as the investment mood soured. The dollar was broadly unchanged, while the 10yr US Treasury yield retreated to 1.3208% ahead of the US CPI data today, which is expected to have moderated slightly in August but remain strong year-on-year. US inflation expectations over the medium term rose to record highs, 4.0% for the next three years and 5.2% in a year’s time. US Democrats stated that they will aim to raise the corporate tax rate to 26.5%, up from the current 21%, with the goal of achieving a $3.5tr domestic investment plan.
Metals on the LME came under heavy selling pressure yesterday, with nickel the worst affected. Protracted selling pressure caused nickel prices to find support at $19,600/t and close at $19,726/t. Copper was next in line as prices struggled above $9,750/t to close at $9,562.50/t, with the cash to 3-month spread widening out to -$12.00/t. Aluminium tested $3,000/t - a 13-year high - as supply disruptions in Guinea and China’s crackdown on energy-intensive industries continue to compound; the metal ended up closing lower on the day at $2,896.50/t. Zinc managed to find support at $3,060/t and closed at $3,084.50/t. Lead and tin were also lower on the day, closing at $2,293/t and $33,498/t, respectively.
Oil futures extended a rally, with crude reaching a 6-week high of $73.92/bl; WTI edged up to $70.38/bl. OPEC monthly report predicted stronger demand for its crude, based on higher global consumption alongside continued output disruptions. Precious metals were mixed, only safe havens have strengthened; gold and silver traded at $1,793.52/oz and $23.77/oz, respectively.
For more in-depth analysis of base and precious metals, please see our Quarterly Metals report.
All price data is from 13.09.2021 as of 17:30
