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Daily Base Metals Report

Daily Base Metals Report

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Authors
Daria Efanova

Daria Efanova Head of Research

Contact research Contact Industrial Commodities

US stocks opened on an upbeat note today, approaching the record highs set at the end of March. The lower bond yields expected this year are helping to boost the stock market, prompting speculation about how long this upward momentum can continue. We anticipate that the market has already factored in the retracement of bond yields, and further decreases in bonds are unlikely to drive the stock market significantly higher. The economic data due this week will be vital for evaluating the effects of the Fed's rigorous monetary policies. Investors are especially focused on upcoming inflation reports to pinpoint the timing of the first anticipated rate adjustment. If inflation figures are below expectations, it would suggest that the Federal Reserve's adjustments may not fully align with the current economic conditions, indicating potential mispricing in the current 10-year US Treasury yield of 4.47%. The dollar weakened against major currencies today, now trading at 105.1.

The base metals market began the week with a moderately bullish outlook, spurred by the announcement from Chinese authorities of their plan to issue $140bn in long-dated bonds to bolster the economy. This initiative is one of the latest efforts to sustain economic momentum into Q2 2024 amidst an ongoing property slump. This approach mirrors actions taken at the start of the pandemic in 2020, but with longer maturities this time, it aims to reduce the debt burden for local governments, enabling them to fund long-term projects. That prompted copper to strengthen back above $10,000/t, but markets struggled above the $10,200/t level, correcting back to $10,185.50/t. Aluminium remained supported above $2,500/t, closing at $2,542/t. Lead and zinc remained elevated at $2,250.50/t and $2,997.50/t, respectively.

In the commodities market, gold decreased to $2,344/oz, while silver experienced a slight uptick, trading at $28.3/oz. Oil prices recovered from yesterday's downturn, with WTI and Brent reaching $79.5/bl and $83.8/bl, respectively.

Lme Metals Price And Volume 13052024

All price data is from 13.05.2024 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.

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