Copper continued its strong rally towards $6450, verifying the recent uptrend in the market. However, precious metal prices remained under pressure for second consecutive session, with gold trading back towards $1170/ounce. Silver extended losses towards $16 while base metal prices traded fairly mixed.
The stronger USD added some pressure to crude oil prices which retreated in today’s session, giving back recent gains. WTI front month futures declined below $59 per barrel while Brent futures slid lower to retest $66 per barrel. Crude oil fundamentals remain bearish following sharp increases in crude oil inventories for 16th consecutive weeks.
Due to the Labour holiday, most European equity markets were closed today. In London, the equity benchmark index edged higher towards 7,000 gaining 0.3%, at the time of writing. In the US, the Dow Jones index rebounded and climbed over 100 points (+0.65%), while the S&P 500 and NASDAQ followed the uptrend.
On the macroeconomic front, the University of Michigan survey showed the economic sentiment was unchanged at 95.9 in April missing slightly analysts’ expectations of 96.0. In addition, the Markit Manufacturing PMI fell slightly to 54.1 in April from 54.2 in March while construction spending declined sharply by 0.6% in March versus analysts’ expectations of a 0.5% rise. The US dollar rebounded with the USD index rebounding above 95.0 against a basket of currencies.