MORNING VIEW: Metals remain upbeat, as do equities, while in reality the world is suffering

On average, base metals prices on the London Metal Exchange and Shanghai Futures Exchange were up by 0.2% and 0.4% respectively at 7.07am London time on Wednesday June 10.

Asian-Pacific equities were mixed but pre-market major western equity index futures were up this morning, showing some mixed currents ahead of the US Federal Open Market Committee (FOMC) economic projections and statement that are out this evening. The LME base metals have now rebounded by an average of 20.3% from the March lows and are down by an average of 11.5% from before the Covid-19 crisis. The S&P 500 is now showing year-to-date gains while the Nasdaq is setting record highs; financial markets seem to be chasing central bank liquidity and have decoupled from the real economy. Base metals Three-month base metals prices on the LME were mixed this morning; lead and zinc were down by 0.1% and 0.2% respectively, while the rest were up by an average of 0.4% - led by a 0.7% rise in copper to $5,805.50 per...


William Adams

June 10, 2020

09:35 GMT