Client Portal
  1. Metals Outlook
  2. Daily Base Metals Report

Daily Base Metals Report

Daily Base Metals Report

Read disclaimer

Back to reports

Authors
G.W

Geordie Wilkes

Contact research Contact Industrial Commodities

Equity markets gained ground in the US ahead of the Fed this evening, but gains have muted. In Europe, indices have declined as investors remain cautious with significant central bank rate decisions this week. UK inflation slowed to 10.7% Y/Y but is still near record highs, the 2-year gilts advanced, and the 10yr yield is at 3.31%. We do not see the recent move by the Fed as a pivot. Historically, 50bps is a big hike, and the market is pricing another large rate hike in February. While it is conceivable that equity markets see a 50bp hike as bullish, their outlook for the global economy is not pretty, and earnings will likely be weaker than expected as higher rates are priced in. The USD index edged lower today, but the currency lost ground against most major currencies, with cable at 1.242, EURUSD at 1.066, and USDCHF at 0.9229.

Metals prices were mixed today, with nickel and copper marginally higher. The trend of weakening spreads persisted with the ali cash to 3s at -$42.50/t contango and copper at -$40.50/t contango, participants continue to roll their positions, but there is still a large short in Dec for aluminium. Copper traded in a narrow range compared to previous days and closed at $8,523/t. Aluminium followed a similar pattern and tested the resistance around $2,466/t but softened to close at $2,452.5/t. Zinc gave back some of the recent gains and closed just off the lows at $3,238.50/t; lead also sold off today after failing into resistance at $2,200/t; the market closed at $2,181/t. Appetite for prices at $24,100/t kept tin above key support, but the market closed at $24,275/t.

Energy prices gained ground today as US imports increased this week, but US crude inventories rose 10.23m barrels, the gulf saw the largest increase in stocks, but output declined. Brent and WTI pushed higher and traded at $82.71/bl and $77.37/bl, respectively. Gold and silver consolidated today ahead of the Fed, trading at $1,808/oz and $23.92/oz, respectively. According to Peak Trading Research, momentum CTAs traders at 100% long of gold futures for the first time since April could limit gains.

All price data is from 14.12.2022 as of 17:30

Lme Metals Price And Volume 14122022

Disclaimer

This is a marketing communication. The information in this report is provided solely for informational purposes and should not be regarded as a recommendation to buy, sell or otherwise deal in any particular investment. Please be aware that, where any views have been expressed in this report, the author of this report may have had many, varied views over the past 12 months, including contrary views.

A large number of views are being generated at all times and these may change quickly. Any valuations or underlying assumptions made are solely based upon the author’s market knowledge and experience.

Please contact the author should you require a copy of any previous reports for comparative purposes. Furthermore, the information in this report has not been prepared in accordance with legal requirements designed to promote the independence of investment research. All information in this report is obtained from sources believed to be reliable and we make no representation as to its completeness or accuracy.

This report is not subject to any prohibition on dealing ahead of the dissemination of investment research. Accordingly, the information may have been acted upon by us for our own purposes and has not been procured for the exclusive benefit of customers. Sucden Financial believes that the information contained within this report is already in the public domain. Private customers should not invest in these products unless they are satisfied that the products are suitable for them and they have sought professional advice. Please read our full risk warnings and disclaimers.

Sign up to get the latest market insights

We will email you each time a new report has been published.

Subscribe

Select all the reports you wish to sign up for and submit your details below

Thank you for subscribing.

You should receive a confirmation email shortly. Please check your spam /junk mail folder if not received within a few minutes.

Do not forget to click the link in the confirmation message, otherwise, you will not receive any of our future emails.

Please note that we cannot email subscribers in the European Economic Area (EEA) or Switzerland, except for journalists.

* Mandatory fields