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Non-independent Research Daily Base Metals Report

Non-independent Research

Daily Base Metals Report

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Authors
Geordie Wilkes

Geordie Wilkes Head of Research

Contact research Contact Industrial Commodities

US and European stocks have risen today on the back of Congress negotiating a relief package along with European leaders securing an $860bn recovery plan. Positive news on three potential coronavirus vaccines, including a candidate from Oxford University / AstraZeneca, followed by CanSino Biologics aided to the rally; however, growing number of infections worldwide adds to investor uncertainty. The dollar softened into 95.34, and the US 10yr yield on fell to 0.6004%. In the UK, the budget deficit swelled to 60-year highs of $45bn in June as a result of record spending on coronavirus stimulus.

Prices on the LME continued to rise today. Zinc prices gained the most to close on the front foot at $2,245.00/t; the cash to 3-month remained in contango at -$9.25/t. Aluminium prices have also found support, closing up just below the key resistance level of $1,700.00/t at $1,696.50/t. Nickel prices broke through support of $13,400.00/t to close at $13,466.00/t; the spreads softened to -$43.00/t. Copper prices were marginally stronger today, closing at $6,534.50/t. Lead tested the key resistance at $1,850.00/t to close at $1,848.00/t.

Oil futures jumped. At the time of writing, WTI and Brent stand at $42.03/bl and $44.52/t respectively. Gold and silver surged to multi-year highs on virus spreading, up to $1,839.43/oz and $21.02/oz.

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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.

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