1. Metals Outlook
  2. Daily Base Metals Report

Base Metals Comment

US stocks edged lower as markets assessed this week’s data ahead of the Fed decision next week. US inflation expectations fell to the lowest level in more than two years. Over the next year, expectations are at 3.1%, down from 3.5% last month; sentiment also fell to 67.7. At the same time, factory activity unexpectedly expanded amid new orders; production barely rose, restrained by a drop in output in vehicles. The market is only pricing in 15bps worth of hikes until the year-end, and investors expect rates to stay higher for longer. The dollar remained firm, and the 10yr yield stayed at 4.32%.

Despite Chinese economic indicators improving from the previous month, the whole base metals complex declined today. We expect that is due to the mean-reversion strategy taking place following the last two days of gains. Aluminium jumped lower to test the $2,150/t level but immediately rejected it, coming back to $2,190/t. Likewise, copper struggled above $8,500/t, returning back to the recent average of $8,400/t, closing at $8,405.50/t. Nickel is once again testing the $20,000/t support level. Lead edged higher, while zinc erased the previous day’s gains, closing at $2,261/t and $2,520.50/t, respectively.

Oil futures remained unchanged, while gold and silver benefited from the risk-off sentiment across riskier assets today, edging to $1,927/oz and $23.20/oz, respectively.

Lme Metals Price And Volume 15092023

All price data is from 15.09.2023 as of 17:30



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