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Daily Base Metals Report

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US stocks jumped today, following the Chinese equity rally, reaching a one-month high on the back of hopes of a rapid economic recovery in the US and China. The Shanghai Composite index posted its biggest gain since June 2018 on the back of positive global outlook, massively outperforming its US counterparts. The dollar fell for the 5th day consecutively, and the yield of 10y Treasuries advanced. Trump is preparing executive orders on a range of subjects tonight, including China and immigration, with manufacturing incentives being the priority. UK stocks were also higher today as hopes of more stimulus bolstered risk appetite, and construction PMI rebounded to 55.3 for the first time since July 2018.

Positive sentiment on the LME market today, as risk appetite returned to the market. Nickel gained 2.6%, breaking above the key resistance level of $13,300/t to close at $13,336/t. Aluminium prices traded up to $1,635/t, but resistance at this level triggered a close at $1,634.5/t. Cash to 3 months softened today into -$33.48/t. Copper prices also strengthened today, closing near the day’s high at $6,128.5/t. Lead was fairly steady today, gaining ground to close at $1,797/t. Zinc closed higher on the day at $2,063/t.

Oil futures gained today on the back of China’s optimism, with WTI and Brent trading up to $40.95/bl and $43.44/bl respectively. Gold and silver advanced to $17,84.91/oz and $18.28/oz.


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