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Daily Base Metals Report

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Authors
Daria Efanova

Daria Efanova Head of Research

Contact research Contact Industrial Commodities

US stocks opened lower today amidst a packed economic calendar this week, which could introduce further volatility into macro-sensitive assets. Last week saw growing optimism among investors, with increased focus on the potential onset of monetary easing in June. In his testimony before the House of Representatives last Wednesday, Jerome Powell maintained a cautious tone, emphasising the need for sufficient data to confirm a decline in inflation before considering the start of monetary easing. Despite the consistent message from the most recent Federal Reserve meeting, investors interpreted Powell's remarks as suggesting that the beginning of monetary easing might be approaching. It appears that market interpretations of macro events are driving the narrative more than the actual announcements of economic releases and statements. After depreciating last week, the dollar index made a slight rebound, trading just below 103, while the 10-year US Treasury yield increased, testing the 4.1% level.

China National People's Congress was held over the weekend to set the country’s growth goals and stimulus plans in hopes of stabilising the economy this year. One of the primary plans involves issuing 1tr yuan of ultra-long special government bonds. This measure is considered as the largest fiscal support scheme since the start of the pandemic. However, the scale of the overall support was not as impressive as the market expected. Iron ore prices collapsed as a result, falling below the robust support level of $110/mt to $106.80/mt. However, the news did not seem to impact the base metals prices, suggesting that the complex is becoming more detached from macroeconomic sentiment. Aluminium and copper edged higher above the robust resistance levels of $2,250/t and $8,600/t, respectively. Meanwhile, nickel jumped higher, breaching the psychological $18,000/t level to close at $18,377/t. At the same time, lead and zinc jumped higher to $2,126/t and $2,567/t.

Gold continued trading at record levels today, standing at $2,185/oz. Silver followed through, climbing to $24.5/oz. Meanwhile, oil prices remained stable within their current range, with WTI and Brent crude priced at $78.2/bl and $82.4/bl, respectively.

Lme Metals Price And Volume 11032024

All price data is from 11.03.2024 as of 17:30

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