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Daily Base Metals Report

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Stocks markets remained under pressure today as weak economic data prompted significant outflows of equity ETFs. U.S. jobless data exceeded estimates once again at 2.98m for the week to May 9th, bringing the latest total to 36.5m. To add insult to injury, tensions between the U.S. and China are escalating once again. On the data front, Chinese FDI improved y/y in April to 11.8%, and we are expecting industrial production and retail sales data from China overnight.

Metals prices were weaker today due to weakness in the macro, except lead which was well supported below $1,600/t and closed at $1,619/t. Copper prices sold off to test appetite a the 50 DMA but found support below $5,150/t to close at $5,202/t. Nickel saw stronger selling today but was supported below $12,000/t and closed at $11,965/t. Zinc remained under pressure closing at $1,957/t but the cash to 3 spread tightened slightly into $1.25/t back. Ali consolidated once again closing at $1,475/t. Cash to 3 spreads for copper and lead also tightened slightly, as did tin which is now at $175/t back.

Precious metals were bid today as macro uncertainty continued. Gold trades at $1,735.20/oz and silver at $15.81/oz. Energy prices were once again firmer today with Brent and WTI trading at $30.37/bl and $26.25/bl respectively.

Chinese data overnight:

  1. Industrial production
  2. Retail Sales
  3. Property Investment
  4. Fixed Asset Ex Rural



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