1. Metals Outlook
  2. Daily Base Metals Report

US stocks softened today, driven in large by the big tech. Apple shares sank on concerns that China can expand the iPhone ban. Further weakness was brought on by softer labour market data, reinforcing the belief of the higher for longer interest rate narrative. US initial jobless claims came in at 216,000 in the week ending September 2nd, marking February lows. This is once again highlighting that the market is slowing marginally however, remaining robust given the historical averages. Elsewhere, GDP data out of the euro area pointed to a lower revision for Q2 performance, growing at 0.1% vs. 0.3% that was estimated in July; lower-than-expected exports were the main factor behind the downward revision. Furthermore, German industrial output fell by 0.8% m/m in July, adding to recessionary worries that are looming over the bloc’s most industrial economy. The dollar retested the 105 level, and the 10-year US Treasury yield held firm at 4.27%.

Mixed performance was seen across the base metals market today, and a stronger dollar and respective weakness in the yuan struggled to sway prices in either direction. Other data pointed to exports out of China falling by 8.8% y/y, vs. -14.5% seen in July. A similar trend was seen in the nation’s imports. While it is too early to tell whether trade activity is rebounding, the signs of an easing slump are a welcome relief to China’s economic performance. Aluminium decline is seen stalling, with another day of little momentum, as the metal remained just below the $2,200/t level, closing at $2,196/t. Copper, on the other hand, weakened for the second consecutive day down to the support of $8,300/t before settling slightly higher at $8,321/t. Lead and zinc held on to their gains, closing at $2,229.50/t and $2,479.50/t, respectively.

Oil futures remained unchanged, while gold and silver performance diverged slightly to $1,920/oz and $22.98/oz, respectively.

Lme Metals Price And Volume 07092023

All price data is from 07.09.2023 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.