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Non-independent Research Daily Base Metals Report

Non-independent Research

Daily Base Metals Report

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Authors
Geordie Wilkes

Geordie Wilkes Head of Research

Contact research Contact Industrial Commodities

Equity markets were uneasy today as leading indices oscillated between negative and positive territory. The dollar gained ground as treasuries yields also improved. The U.S. 10yr increased to 0.7413%, close to 3 weeks high. We continued to see pressure on the euro following yesterday’s court decision in Germany. European data was weak today, as April’s preliminary Markit services & composite PMIs were 12 and 13.6 respectively. Retail sales for March were -9.2% y/y.

Sentiment on the LME was mixed, nickel and zinc prices were well supported. Nickel prices broke key resistance at $12,300/t and closed at $12,303/t. Zinc broke through resistance at $1,950/t and closed at $1,975/t. The cash to 3-month spread tightened into $1/t back. Copper prices were also firmer today closing at $5,198/t. Ali was marginally weaker, closing at $1,479.50/t.

Spot gold sold off today, breaking through support at $1,700/oz and currently trade at $1,686/oz. Oil prices failed into key resistance today with WTI and Brent trading at $23.62/bl and $29.30/bl respectively.

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