Base Metals:
Copper bounced back up after trading through the $5,800 support, and broke this morning the $5,900 resistance trading towards the $6,000 level, supported by a lower USD, better than expected Chinese trade balance and new Chinese official policy to support public spending. Cash to 3 months closed at $13.75 contango yesterday. Aluminium touched the $1,760 support and rose back up, still trading in a downtrend channel, being now at the upside, and breaking through it could result into a rise towards the $1,820 region. Full spread remains at $30.25 contango. Nickel held for 4th day in a row the $11,600 support and is rising now towards the $12,000 resistance. The spread remains at $82 contango. Zinc keeps trading in the $100 range, holding support at $2,450 and resistance at $2,550. A break through any of those would result into a $100 move. The spread rose to $151 backwardation. Lead keeps in backwardation, back to $42.5 backwardation, after touching the support $1,840 and trading now towards the resistance and highest of the month $1,920. Tin keeps trading above the $19,000 level with cash to 3 months at $110 backwardation.

Precious metals
Gold remains at $1,325 support level, after the sharp sell-off once reached the top $1,350, and below, the $1,310 remains as main support. US-Mexico trade deal and China internal policy to boost public spending weighted on safe haven metal. Yesterday’s improving fundamentals on trade balance from China pressured the precious metals complex. Also rising bond yields brought pressure to gold and silver, trading this last to $14.71, well below the $15 level traded last week.
Platinum remains above the support $800 and palladium slightly rose following base metals trend trading at $1,385.

Oil
Oil dropped with Brent down 1.42% yesterday finishing at $62.31 and WTI -1.19% trading at $53.35. Investors left oil US on a profit taking session.

FX
USD remains around the same levels as yesterday, trading against the EUR at 1.1314 and v. the GBP at 1.2672. Higher bond yields, expectations of a rate cut in July and trade agreement with Mexico pressured the USD against a basket of major currencies.

Equities
DAX was closed yesterday in observance of Whit Monday. DJI gained 0.3% and finished at 26,062. Nikkei rose 00.33%, HSI +0.89% and SSEC gained +2.5%. Beijing easing financing rules to push regional public investments held Asian stocks and worked as a support to bring them higher.

Macro Data
European Sentix Investor Confidence at 09.30. US NFIB Small Business Index at 11.00, Core PPI, PPI at 13.30. IBD/TIPP Economic Optimism during the day. UK Average Earnings Index, Claimant Count Change, Unemployment Rate at 09.30.

This report was written at 8:30. All times referenced are GMT.

Disclaimer
IFCM Commodities GmbH is a tied agent of INTL FCStone Ltd. INTL FCStone Ltd, a company registered in England & Wales and a wholly owned subsidiary of INTL FCStone Inc. [NASDAQ: INTL], is authorised & regulated by the Financial Conduct Authority [FRN: 446717]. Commodity trading involves risks, and you should fully understand those risks prior to trading. This material should be construed as market commentary, merely observing economic, political and/or market conditions, and not intended to refer to any particular trading strategy, promotional element or quality of service provided by INTL FCStone Ltd. References to and discussions of Structured OTC products are made solely on behalf of INTL FCStone Markets LLC, a member of the National Futures Association (NFA) and provisionally registered with the U.S. Commodity Futures Trading Commission (“CFTC”) as a swap dealer. Information contained herein was obtained from sources believed to be reliable, but is not guaranteed as to accuracy. The content of this document is for information purposes only and may not be taken as representation, advice, or inducement to enter into any contract, investment or arrangement. INTL FCStone Ltd fully disclaims and shall be held harmless against any liability howsoever arising, that may be incurred or suffered by any party from the reliance, use, misuse, reproduction (in part or whole) and dissemination of such information. © 2019 INTL FCStone Ltd. All Rights Reserved