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Daily Base Metals Report

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Authors
Daria Efanova

Daria Efanova Head of Research

Viktoria Kuszak

Viktoria Kuszak Research Associate

Contact research Contact Industrial Commodities

US stocks opened higher today as markets awaited Federal Reserve Chair Jerome Powell’s comments, expected later in the day, for insights into the potential path of monetary easing. Economic data released this afternoon showed ADP private-sector employment increasing by 146k in November, a smaller gain than anticipated and down from the downwardly revised 184k in October. The ADP report, which tracks private-sector hiring trends, often provides an early glimpse into labour market conditions ahead of the government’s official jobs report. Shortly after this release, the final S&P Global US Services PMI surprised to the downside, dropping from 57.0 to 56.1. This weaker-than-expected data drove the dollar index lower, falling from 106.7 to 106.2, while the 10-year US Treasury yield declined from 4.28% to 4.20%, reflecting increased investor expectations in the likelihood of another 25bps rate cut at the Fed’s meeting next week. In contrast, UK and Eurozone services PMIs exceeded expectations, with the UK reading at 50.8 and the Eurozone at 49.5. The UK composite PMI edged above the 50.0 threshold, signalling a return to expansion territory, while the Eurozone’s figures, though still in contraction, indicated a slight improvement in economic momentum.

Another day of marginal moves was seen across the base metals space today as a resilient dollar weighed on prices. Copper struggled to break above yesterday’s highs, closing at $9,121/t. Lead continued to experience short covering, as it is edging to the $2,100/t resistance level. Likewise, zinc struggled above the $3,100/t resistance level once again, remaining slightly below it at $3,099/t. Aluminium strengthened back to $2,646.50/t. 

Precious metals rose today as markets digested softer-than-expected US data, fuelling expectations of a potential interest rate cut at the Fed’s upcoming meeting. Gold climbed to $2,654/oz, while silver advanced to $31.40/oz. Oil prices, meanwhile, traded flat, with WTI at $69.50/bbl and Brent crude at $73.20/bbl.

Lme Metals Price And Volume 04122024

All price data is from 04.12.2024 as of 17:30

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