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Daily Base Metals Report

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President Trump has put together a plan to reopen the U.S. economy, prompting a risk on day. The guidelines to states outline how they could relax isolation measures. Chinese data was weak prompting the government to promise stronger stimulus to help the economy recovery. We expect the recovery to be U-shaped but the stimulus could support commodities. There was also optimism from a medical standpoint as researchers get closer to a cure.

Prices on the LME were supported today as risk appetite prompted the market. Copper prices traded up to $5,237/t but resistance at this level triggered a close at $5,211/t. Cash to 3s tightened today into -$17/t. Nickel prices also strengthened today, prices closed near the day’s high at $12,042/t. Zinc was supported again today but found resistance at $1,970/t prompting a close at $1,958/t; the spread tightened moderately once again but remains in contango. Lead and Ali were weaker today.

The risk appetite was a significant headwind to gold prices, the market trades at $1,688.5/oz, silver also sold off today to $15.16/oz. Energy prices were mixed today as the Brent/WTI spread continues to widen. Brent has gained 2.8% today and trades at $28.61/bl with WTI at $18.38/oz.


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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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