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Non-independent Research Daily Base Metals Report

Non-independent Research

Daily Base Metals Report

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Authors
Dariaefanova

Daria Efanova Research Associate

Contact research Contact Industrial Commodities

US stocks rebounded yesterday in hopes of the new variant causing limited damage to the global economy. US productivity fell in Q3 by 5.2%, below market consensus. In the latter half of the day, the dollar shot up, and the 10yr US Treasury yield edged higher. The data showed that private consumption was the biggest driver behind the euro-area growth in Q3, which saw softening quarter-on-quarter, in part due to the removal of government support. Exports in China continue to beat record highs, growing by 22% y/y in November, supported by strong demand and easing restrictions around power usage for manufacturers. Elsewhere, UK consumers returned to the shops for Black Friday deals and pre-Christmas shopping, indicating a robust appetite for goods and services.

Metals prices were firmer yesterday as risk returned following the Omicron sell-off. Aluminium strengthened into the resistance of $2,633/t, but that level held firm, and the metal closed at $2,628.50/t. Copper was supported above $9,500/t and managed to close higher on the day at $9,595/t. Zinc was the largest mover and held above $3,200/t; the metal closed the day at $3,226.50/t. Nickel was stronger, closing at $20,189/t. Only lead was seen down on the day, closing below the support level of $2,200/t at $2,186/t.

Oil futures followed the general market, with WTI and Brent rallying to $72.53/bl and $75.88/bl. Precious metals were primarily range-bound.

For more in-depth analysis of base and precious metals, please see our Quarterly Metals report.

LME metals price and volume

All price data is from 07.12.2021 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.

This report is not subject to any prohibition on dealing ahead of the dissemination of investment research. Accordingly, the information may have been acted upon by us for our own purposes and has not been procured for the exclusive benefit of customers. Sucden Financial believes that the information contained within this report is already in the public domain. Private customers should not invest in these products unless they are satisfied that the products are suitable for them and they have sought professional advice. Please read our full risk warnings and disclaimers.

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