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Daily Base Metals Report

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Equity markets in Europe gave back some of yesterday’s gains today. US indices have lacked conviction and have oscillated between positive and negative territory. Jerome Powell reaffirmed during his senate hearing that the Fed would do use all its available tools to support the economy. The dollar index is marginally weaker today. The reescalation of tensions between the U.S. and China has prompted the Nasdaq to put together new IPO and accounting standards, making it tricky for Chinese companies to list on the exchange.

Most LME prices were higher today except Ali. Copper prices opened on the front foot day, gapping to $5,374/t, but the market weakened but closed above key support at $5,350/t at $5,355/t. Nickel prices maintained yesterday’s strength, breaking resistance at $12,400/t and closed at $12,453/t. Lead and zinc prices were firmer today and closed at $1,682.5/t and $2,033.5/t respectively. Spreads across the board were slightly weaker today, except lead which tightened to $16.75/t contango.

The energy market was slightly softer today with WTI and Brent at $31.76/bl and $34.35/bl, demand is recovering but high global inventories remain elevated. Precious metal prices have gained ground today with gold and silver at $1,742.32/oz and $17.44/oz, respectively.

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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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