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

Daily Base Metals Report

Read risk warning

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.  

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.

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

Daily Report Softs Technical Charts

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

Weekly Report FX Options

Commentary and analysis covering OTC currency option pricing, volatility and positioning.

Quarterly Metals Report – Q4 2020

Our analysts provide fundamental and technical analysis and forecasts for base and precious metals, iron ore and steel. We assess how COVID-19 has impacted the metals market and outline what data points to look at to help navigate the next few months in the market.