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Daily Base Metals Report

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European equity markets sold-off today in the last day of trading in May, at the time of writing U.S. equities have lost ground. Donald Trump is expected to speak about tensions with China, which is increasing apprehension in the market. On the data front, readings continued to be poor as retail inventories m/m declined 3.6%. Personal income increased by 10.5% in April but personal spending was weak at 13.6%.

Activity on the LME was positive today with all metals except tin trading higher. Zinc and lead were particularly strong as protracted buying pressure triggered closes just off the highs at $1,988/t and $1,673.5/t, respectively. Copper prices were well supported below $5,319.50/t and broke through resistance at $5,350/t to close at $5,376.5/t Nickel and ali were also supported closing at $12,324/t and $1,548/t respectively. Copper and Ali cash to 3s tightened today but the others were largely range-bound.

Gold and silver were once again well supported today trading at $1,735.02/oz and $17.84/oz respectively. Energy prices have recovered earlier losses with brent and wti trading at $34.86/bl and $33.43/bl respectively.



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