1. Metals Outlook
  2. Daily Base Metals Report

US stocks dropped today on another stronger-than-anticipated economic data release, driving the sentiment behind tighter monetary policy outlook from the Fed; the S&P 500 fell for the third day straight as a result. The retail sales grew by 1.3% m/m, marking the biggest monthly increase in eight months in October, further highlighting the robustness of consumer demand despite higher borrowing rates. Meanwhile, US factory output rose by 0.1% m/m, less than expected, highlighting that the manufacturing sector is losing some steam. The dollar continued to edge lower, and the 10yr US Treasury yield softened into 3.73%. The euro rebounded to 1.04, boosted by hawkish comments from some central bank officials. At the same time, UK inflation continued to beat new highs, with the October figure growing by 11.1% y/y; the markets are now pricing in a 60bps hike from the BOE in December and a peak of 4.51% in June 2023.

China’s central bank warned today that the nation might see inflationary pressures accelerate in the coming months due to changes in overall demand, as it pledged to support the growth while maintaining price levels. At the same time, the Chinese central bank stated it would increase support for the economy and keep liquidity ample. Nickel sold off, nearly offsetting the previous days’ of gains, falling back below $30,000/t to close at $27,532/t. Aluminium edged marginally lower for the third consecutive day, down to $2,412/t. Likewise, copper softened to $8,293.50/t. Lead and zinc both weakened to close at $2,170.50/t and $3,053.50/t, respectively. Only tin was seen closing higher at $23,635/t.

Oil futures fell from gains earlier on in the day, with WTI and Brent now trading back at $84/bl and $91/bl. Likewise, gold and silver softened into $1,776/oz and $21.51/oz, respectively.

For more in-depth analysis of base and precious metals, please see our Quarterly Metals report.

Lme Metals Price And Volume 16112022

All price data is from 16.11.2022 as of 17:30


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