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Daily Base Metals Report

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Stocks have risen today across the globe on the back of US-Sino negotiation breakthrough, where China is planning to accelerate the US farm purchases to comply with the phase one trade deal. This comes at a time when Trump is escalating the criticism of China’s handling of the coronavirus crisis. The treasuries and the dollar declined. In Europe, investors’ attention turned to negotiations over $840bn stimulus proposal programme to help put the economies back on track. UK retail sales (inc fuel) saw a sharp rebound of 12.0% m/m in May bolstering hopes of a swift economic recovery.

ME metal prices were mixed today, with nickel, lead and aluminium lower on the day. Copper continues to be well bid, but failed above $5,900/t and closed at $5,849.5/t. Zinc was firmer and took out the resistance level at $2,050/t before closing at $2,082/t. Lead gave back recent gains, remaining below the key resistance level of $1,800/t and closing at $1,778.5/t. Aluminium was range-bound today, however, in the afternoon, the protracted selling pressure prompted ali to break through $1,600/t and close the week at $1,592/t. The cash to 3m spread softened marginally to -$20.25/t. Similarly, nickel fell below the key support level of $12,800/t to close at $12,769/t.

Oil futures gained ground today on the back of hopes of recovering demand, which could signal a recovery in shale production. At the time of writing, WTI and Brent are at $39.37/bl $41.95/bl respectively. Gold and silver metal were stronger today, trading at 1741.97/oz and 17.65/oz respectively.


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