US stocks finished the week on the back foot after Chinese authorities intensified the regulatory crackdown on cryptocurrencies, naming them illicit financial activity. The dollar strengthened, and the 10yr US Treasury yield continued to gain ground. The UK consumer confidence fell at the sharpest rate since last October, when the lockdown restrictions tightened up for the second time, as a surge in inflation muted the outlook. German business confidence fell to a 5-month low in September, as stubborn shortages of raw materials and the continued threat of delta spread threaten the outlook for producers.
LME metal prices were on the front foot on Friday, apart from aluminium, which closed lower on the day at $2,915.50/t. Copper prices were well supported and tested resistance at $9,400/t; prices closed lower at $9,332.50/t. SHFE copper prices also strengthened, closing at CNY69,010/mt; the next day, prices gained ground to CNY69,480/mt. Lead was well bid in the second half of the day, testing the resistance level of $2,170/t before closing below at $2,153.50/t; the cash to 3-month spread tightened up to $15.75/t. Zinc advanced, supported above $3,080/t, the metal closed at $3,128.50/t. Nickel prices remained marginally supported above $19,000/t for most of the day closed higher at $19,387/t.
Oil futures gained ground for the fifth straight week on the back of declining stockpiles in both China and the US. WTI and Brent increased to $73.93/bl and $77.92/bl. Precious metals were mixed once again; gold continued to gain ground to $1,753.21/oz; silver traded at $22.47/oz.
For more in-depth analysis of base and precious metals, please see our Quarterly Metals report.
All price data is from 24.09.2021 as of 17:30
