1. Metals Outlook
  2. Daily Base Metals Report

US stocks traded lightly today as investors pay attention to the Fed speech tonight. The Fed committed to a 25bps hike, a bet that was once overshadowed by a pause or even a bigger increase in recent weeks. The next question the markets will be asking themselves is whether this will be the end of monetary policy tightening, and we expect that following the SVB and other banking sector risks, financial conditions have tightened. The dollar remained broadly unchanged, and the 10yr US Treasury yield is at 3.50%; the 2yr yield jumped back to 4.14%. Elsewhere, the unexpected uptick in UK inflation up to 10.4% y/y has brought into question whether the pace of tightening from the BOE is over; forward swaps are pricing in a 22bps increase in interest rates tomorrow.

Some moderate upside was seen across the base metals complex in anticipation of the Fed meeting. Aluminium started on the back foot, but recent support at $2,270/t held firm and the metal bounced higher to $2,286.50/t. Copper solidified three consecutive days of gains, edging back to $8,888.50/t; cash to 3-month tightened into backwardation for the first time since January, suggesting a tightening balance. Lead and zinc closed higher at $2,116/t and $2,866/t, respectively.

Oil futures gained ground, with WTI and Brent increasing up to $70/bl and $76/bl. All precious metals were seen higher; gold and silver are now trading at $1,950/oz and $22.50/oz, respectively.

Lme Metals Price And Volume 22032023

All price data is from 22.03.2023 as of 17:30

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.