US stocks rebounded after Monday’s sell-off, as continued discussions surrounding China’s real estate sector and the Fed statement clouded the outlook. The Fed decision is out today, and while the change in interest rates is highly unlikely, the discussion surrounding the beginning of tapering measures raises the market’s interest. The dollar remained broadly unchanged, and the 10yr US Treasury yield gained ground.
Most of the metal on the LME were down yesterday, only with tin closing marginally higher at $33,820/t. Many factories in the key manufacturing hub of Jiangsu are now being told to halt manufacturing, another round of measures to reduce the emissions. Aluminium shot up to test $2,900/t but lost momentum above that level and closed below at $2,846/t; the cash to 3-month spread widened out to -$20.98/t. Copper weakened in the second half of the day, testing support just above $8,800/t, closing higher at $8,975.50/t. Likewise, nickel followed suit, founding support at $18,400/t before closing at $18,830/t. Zinc and lead were also softer, closing at $2,978/t and $2,134/t, respectively.
Oil future slipped ahead of the Federal Reserve meeting in the first half of the day but managed to gain back; WTI and Brent edged higher to $70.50/bl and $74.23/bl. Precious metals were all stronger, with silver and platinum seeing strong gains during the day; gold and silver traded at $1,776.72/oz and $22.64/oz, respectively.
For more in-depth analysis of base and precious metals, please see our Quarterly Metals report.
All price data is from 21.09.2021 as of 17:30