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Daily Base Metals Report

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US stocks climbed today on the back of the biggest increase in consumer confidence since 2011. The Nasdaq has posted a 36% increase this quarter, breaking the record highs since the beginning of June. The rise of new coronavirus cases adds to the downside risks, and the Fed has begun its preparations for the second wave of infections, laying out the key features of the lending programme. The yield on 10Y Treasuries increased and the dollar declined. China passed the key national security legislation for Hong Kong, further damaging its reputation with the US and the UK.

LME metals were mixed today, and aluminium and copper were well supported. Aluminium prices tested key resistance at $1,620/t but closed below at $1,619.5/t. Copper prices were firmer today, closing at $6,015/t. The cash to 3-month spread softened into -$9.00/t. Lead prices declined the most today, closing below the key support level of $1,780/t at $1,774/t. Nickel prices struggled to gain footing on the upside, closing just above the support level of $12,800/t at $12,805/t. Tin was marginally weaker, closing at $16,722/t.

Gold climbed above $1,780/oz for the first time since December 2012, and silver gained 1.95% today. At the time of writing, gold and silver trade at $1,783.68/oz and $18.21/oz respectively. Oil futures declined as expectations of muted demand persisted today, driving WTI and Brent down to $39.73/bl and $41.22/bl respectively.

Risk warning

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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