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Daily Base Metals Report

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European stocks were marginally stronger today, as a host of European countries ordered nightclubs to close and amended opening hours for bars and restaurants. Cases in Europe continue to rise causing government’s to tighten restrictions. In the U.S. tech stocks led the charge toward record highs. The Fed is expected to amend their stance on the inflation rate in the U.S., it is thought that they will be comfortable with inflation above the current 2% for a longer period of time. Mortgage delinquencies in the U.S. increased in Q2 to 8.22%, the highest since 2011.

Prices on the LME were stronger today as risk appetite returned. Copper prices challenged resistance at $6,500/t but this level held firm and we retreated to close at $6,446/t. Zinc was the biggest winner today as protracted buying pressure prompted a break of resistance at $2,400/t, and closed just off the high at $2,442/t. Nickel prices tested $14,700/t but failed at this level and closed at $14,599/t, with the cash to 3month spread at -$56/t. Ali and lead were also stronger today closing on the front foot at $1,756/t and $1,971/t. Elsewhere in the metals market, COMEX copper prices were well supported and trade at $291.80/lb. SGX iron ore prices and closed at $118.78/t as Rebar prices also improved RMB3,837/t.

Energy prices were stronger as well today as Angola is expected to cut exports in the coming months. Brent and WTI trading at $45.02/bl and $42.43/bl. Precious metals were well bid again today as gold pushed back towards $1,990/oz trading at $1,987.74/oz at the time of writing, with silver at $27.42/oz.


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