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Daily Base Metals Report

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Equity markets were firmly on the front foot today in Europe and the U.S. indices, which are quickly approaching all-time highs. Energy and Industry stocks have done particularly well. Tensions between the U.S. and China remain elevated, as Donald Trump looks to ban Tik Tok and Wechat. China's recent retaliation to America's actions suggests an attempt to cool tensions. In the U.K., jobs data is worsening as we saw a decline in employment by 220,000 during Q2. The Office for National Statistics suggests that July is down 730,000 compared from March. 

Sentiment on the LME was mixed again today, lead was the big mover as primary output fell due to maintenance at smelters. Lead prices were well supported below $1,900/t to close at $1,960.5/t, the cash to 3-month spread has not tightened. Zinc bid below $2,400/t and closed at on the front foot at $2,410/t. Copper consolidated today after yesterday's gains, the market closed at $6,386/t. Nickel prices were also stronger, after appetite for prices below $14,090/t to close at $14,350/t. Ali closed at $1,786/t after selling off to test appetite at $1,750/t. 

Precious metals declined today, as we saw gold, and silver ETFs fall sharply. Silver is down 8.5% at the time of writing and trades at $26.65, as gold is down 4.16% trading at $1,942/t. Brent and WTI prices have consolidated today, trading at $45.02/bl and $42.09/bl, respectively. 

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.

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