US stocks gained ground yesterday. We await the inflation indicator on Wednesday after in US payroll showed a jump in average earnings, which is expected to reach 5.9%. The dollar softened and the 10yr US Treasury yield held its nerve after previous session’s sell-off. Meanwhile, China posted a record monthly trade surplus, as exports jumped by 27.1% y/y in October.
LME metal prices were on the front foot after lawmakers in the US passed the biggest infrastructure package, driving the expectations for a higher need for base metals. Aluminium prices were well supported and tested resistance at $2,610/t, prices closed lower at $2,605/t. Nickel was well bid in the second half of the day, testing the resistance level of $19,670/t, before closing below at $19,640/t; the cash to 3-month spread strengthened up to $73/t. Zinc prices strengthened, before closing at $3,271/t. Lead was seen marginally higher closing at $2,365/t.
Oil futures advanced after investors assessed the possibility of OPEC+ stocks being released. WTI and Brent traded at $81.93/bl and $83.53/bl. Precious metals were mostly higher, with silver seeing strong gains to $24.42/oz; gold traded at $1,823.50/oz.
For more in-depth analysis of base and precious metals, please see our Quarterly Metals report.
All price data is from 08.11.2021 as of 17:30