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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

Risk appetite was damaged today, rising tensions between the US and China, question marks over the latest US stimulus, sanctions on Hong Kong from the UK, offset the positiveness from the change in non-farm payrolls. NFPs were 1763k, above expectations of 1480k, unemployment fell to 10.2% as average hourly earnings was 4.8% y/y. The dollar index was slightly firmer today but remains below 94. The US 10yr yield was stronger today and trades at 0.5591% at the time of writing.

Sentiment on the LME was weak today as selling pressure was strong and prices slipped on the downside. Copper was weak and traded towards support at $6,300/t, the market LME closed at $6,308 but prices have continued to fall after the close. Lead was the also subject to strong selling pressure breaking through support at $1,950/t to close at $1,915/t. Ali was weaker as well and tested appetite around $1,760/t, support at this level prompted a close at $1,771/t. Nickel failed above $14,500/t and closed at $14,380/t. Zinc and tin closed at $2,404/t and $17,771/t respectively.

Precious metals came under pressure as question marks over the latest stimulus package were raised, gold and silver trade at $2,028.79/oz and $27.88/oz respectively. Oil was weaker on the day but remains in the $40-45/bl range with Brent and WTI at $44.45/bl and $41.33/bl respectively.  

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