1. Reports
  2. Daily Base Metals Report
Non-independent Research

Daily Base Metals Report

Read disclaimer

US stocks gained a foothold on the upside today alongside European shares as positive news around vaccine development and the speculations about Washington passing the stimulus bill this week. US jobs data painted a grim picture, as July payroll gains slowed down sharply to 167,000, down from 4.3m in June. Meanwhile, the US service industry expanded to 58.1 in July, the fastest pace since February 2019. The dollar softened into 92.627, and the 10yr yield on Treasuries picked up to 0.5445%. Eurozone’s composite PMI index climbed to the highest level in 2 years.

Metals prices were all stronger today, except for aluminium, which closed on the back foot at $1,767/t. Nickel was firmer today, testing the resistance at $14,600/t before closing at $14,419/t. Copper was also well bid, closing at $,6494.50/t; the cash to 3-month spread softened into $2.00/t backwardation. Lead and zinc strengthened today, closing above resistance levels of $1,930/t and $2,400/t at $1,933/t and $2,409/t respectively. Tin remained range-bound, closing at $17,885/t.

Oil futures rose on the back of falling US stockpiles. At the time of writing, WTI and Brent trade at $43.03/bl and $45.80/bl respectively. Gold continued its ascend, trading above $2,000/oz resistance level at $2,044.99/oz. Silver is $26.85/oz at the time of writing.

Disclaimer

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.

Sign-up to get the latest Non-independent research

We will email you each time a new report has been published.

You might also be interested in...

Daily Report FX

A morning report covering fundamentals and technicals for USD, EUR, GBP, JPY, and CHF.

Weekly Report FX Options

Our FX Options Report contains commentary and analysis covering OTC currency option pricing, volatility and positioning. 

Daily Report Softs Technical Charts

Technical analysis and charts for the key sugar, cocoa and coffee contracts.

Quarterly Metals Report – Q3 2022

Our analysts provide an in-depth analysis of the metals market and current macroeconomic conditions. The environment has weakened significantly as growth fears rise amid persistent high inflation. Central banks are data-dependent, which could mean they slow rate hikes as growth starts to slow. This has meant a downside to the US 10yr yield, but also we see a downside to rate hikes in Q4. Europe will likely enter a recession before the US and take longer to recover, but material availability is significantly lower, shown by low inventories.

FX Monthly Report June 2022

Monthly commentary covering the FX markets, providing insights on recent developments on select currency pairs. This month we look into the JPY and the pressure the BOJ is under to change their monetary policy as JPY continues to weaken against major currencies. Economic data is weakening and inflation is less of a problem in Japan, but yields continue to test the cap.