US stocks declined on Monday, driven in part by the intensifying angst over China’s Evergrande as well as speculation over the Fed’s meeting this week. Indeed, according to a Bloomberg survey, the Fed should make a formal announcement to taper in its November meeting while keeping the interest rates unchanged through 2022. US homebuilder sentiment increased for the first time in five months in August amid softer lumber prices and continued housing demand. The dollar was unchanged, and the 10yr US Treasury yield softened to 1.3107%.
LME metals retreated yesterday as continued aftermath of China stepping up restrictions on industrial activity. Aluminium prices softened yesterday but were supported above $2,840/t to close at $2,863/t. Copper saw the strongest selling, testing the key support level at $9,000/t and closed at $9,033/t. Nickel was also under pressure, closing at $19,056/t, and the cash to 3-month spread widened out to $19.00/t. Zinc crossed below the $3,020/t level in the second half of the day and closed near the day’s low at $3,014/t.
Oil futures declined yesterday after Royal Dutch Shell announced that a platform in the Gulf of Mexico would be out of service for the rest of the year. WTI and Brent sold off to $70.35/bl and $73.91/bl. Precious metals were mixed, with gold edging higher to $1,761.31/oz; silver traded at $22.22/oz.
For more in-depth analysis of base and precious metals, please see our Quarterly Metals report.
All price data is from 20.09.2021 as of 17:30