1. Metals Outlook
  2. Daily Base Metals Report

US stocks saw a positive opening today as traders reacted to a slew of economic indicators that brought additional fluctuations to the markets. Shifting focus from the recent geopolitical tensions in the Middle East, attention today cantered on key domestic economic metrics. US manufacturing performance, as indicated by the S&P report, fell to 49.9 from 51.9, while the services sector underperformed expectations at 50.9, compared to a forecast of 52. Today's data exerted downward pressure on the dollar index, which dropped to 105.75, and the 10-year Treasury yield, which declined to 4.58%. In the UK, the manufacturing sector also underperformed, with the S&P Manufacturing PMI dipping to 48.7 from 50.3, although the services sector showed resilience, rising to 54.9 against expectations of 53.1. The Eurozone mirrored this pattern, with manufacturing falling to 45.5, but services improved to 52.9. These figures illustrate a contrasting strength in the services sector across regions amidst weaker manufacturing outputs.

Base metals prices weakened today, following the recent weeks’ upward trend. This decline appears to be a corrective pause, providing relief from previously overextended prices and potentially setting the stage for investors to reassess the market's direction. Notably, we see little downside risk for copper in the near term, supported by tightening supply fundamentals, which should strengthen support at current levels. As a result, copper is currently trading above the trend support level of $9,700/t. In contrast, aluminium lacks strong fundamental backing to sustain higher prices, prompting prices to break below the $2,600/t support level to $2,579/t. Lead and zinc remained unchanged at $2,184.50/t and $2,792.50/t, respectively.

Gold continued its downward trajectory, settling at $2,319/oz, while silver remained relatively stable at $27.2/oz despite the previous day's sharp decline. Oil prices also continued their descent, with WTI dropping to $82.7/bl and Brent to $87.7/bl, reflecting ongoing concerns over global economic health and demand prospects.

All price data is from 23.04.2024 as of 17:30


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