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Daily Base Metals Report

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US stocks have gained ground, with tech leading the way, despite continued concerns surrounding the US economy. The probability of a new pandemic relief package is low at this time even though negotiations between the Republicans and Democrats have restarted. The dollar index has edged higher but the US 10 yr has consolidated. In Europe, sentiment was mixed due to the rise in COVID-19 cases and the EU asking the UK to commit to some of the EU’s trade deal requests.

LME activity was more positive today, with only lead and tin down on the day. Copper prices were well supported at $6,500/t before closing at $6,545/t as the cash to 3-month spread weakened to $1.45/t contango. Aluminium saw more withdrawals from LME warehouses, prices were bid and closed at $1,748.5/t. Zinc failed to gain a foothold above $2,400/t which prompted a close at $2,369/t. Nickel prices consolidated today after investors rejected $14,500/t, the market closed at $14,264/t. Lead closed just off the lows at $1,834.5/t with Tin falling victim to selling pressure again and closed at $17,185/t.

Oil prices edged lower today with Brent and WTI trade at $41.75/bl and $40.10/bl, respectively. Gold is marginally lower today and traded at $1,860/oz with silver struggling around $23/oz.

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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.

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