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Daily Base Metals Report

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Stocks rebounded today despite U.S. jobless claims reaching 5.24m, stocks are trading in positive territory. Other major equity indices were marginally higher. Treasuries were also bid due to weak economic data from the U.S. The combination of over 20 million new unemployed citizens in the U.S., and a survey from the Fed saying 55% of households in the U.S. could not cover 3 months of expenses with savings. This is expected to provide strong headwinds to the U.S. economy in the near term.

Activity on the LME was mixed today, all moves were fairly benign on the 3months. Ali was the supported again today as prices broke $1,510/t to close at $1,512.5/t; cash to 3s remain weak at -$37.75/t and we expect this to continue. Copper prices closed at $5,140/t, the market seemed undeterred by weak U.S. data, with some analysts pointing to U.S. jobless beating estimates as positive despite the 5.2m figure. Lead and nickel softened slightly today as zinc found some moderate support. Spreads remain weak and have largely consolidated in the last sessions, except tin which has seen the back narrow.

Gold surged higher earlier but failed to hold onto gains and trades at $1,711/oz marginally down on the day. Oil prices failed at $29/bl and have also weakened today.


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