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

Daily Base Metals Report

Read risk warning

US stocks edged higher, as investor confidence improved, however, remained on track for a weekly decline. US inflation accelerated in August, growing by 1.3% y/y, above market expectations, partly supported by gains in used cars. In the latest round of trade talks, China retaliated, targeting US diplomats in China, after the recent limit by the Trump administration towards the Chinese diplomats. In the UK, new daily cases of COVID-19 are spreading rapidly, with the R number rising above 1 for parts of the country. The UK economic output surged 6.6% m/m in July, boosted by restaurant activity, however, risks of rising job losses could threaten long-term recovery.

The sentiment on the LME was tentatively positive, only with aluminium closing down on the day at $1,775/t. Copper prices were well supported and tested resistance at $6,750/t on falling stockpiles, closing just off the highs at $6,739/t. Nickel was under pressure in the first half of the day but strengthened, later on, testing the resistance level of $15,100/t, to close at $15,094/t. Nickel cash to 3m spread tightened further to -$45.01/t. Zinc and lead consolidated, closing at $2,471/t and $1,889.50/t respectively. Iron ore was higher on the day, closing at CNY828.50/mt.

Oil futures were range-bound, with WTI and Brent trading at $37.54/bl and $40.08/bl. Precious metals traded higher, edging up to $1,948.98/oz and $26.91/oz.

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 – Q3 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.