US stocks fluctuated during the day, with gains driven in part better-than-expected labour market data. ADP jobs report pointed to more jobs being added in September, the most since June, cementing the belief of a continued recovery in the labour market to be shown by the US nonfarm payrolls tomorrow. The dollar rallied back to 94.44 levels, and the 10yr US Treasury yield softened. European gas prices softened after Russia said the country is willing to help to stabilise soaring energy prices. UK inflation expectations topped 2008 highs, as the 10yr breakeven rate climbed above 4.00% on the back of rising energy prices.
Sentiment on the LME was weaker yesterday, with only tin marginally higher. Copper was well supported, testing resistance at $9,200/t; however, lost ground in the second half of the day, closing above the key support level of $9,000/t at $9,045.50/t. Aluminium came under moderate selling pressure, closing near the day’s lows at $2,897/t. Aluminium cash to 3-month spread tightened into -$13.25/t. Zinc and lead remained mostly range-bound, closing marginally lower on the day, at $3,014.50/t and $2,151/t, respectively. Tin has found support at $35,000 to close higher at $35,165/t.
Oil prices slipped for the first time in six sessions after the US stockpiles rose by more than expected. WTI and Brent fell into $77.63/bl and $81.28/bl. Precious metals softened marginally, with gold and silver edging lower to $1,756.58/oz and $22.39/oz, respectively.
For more in-depth analysis of base and precious metals, please see our Quarterly Metals report.
All price data is from 06.10.2021 as of 17:30