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Daily Base Metals Report

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US stocks fluctuated once again today, with technology earnings results dragging shares down. The final presidential debates in the US seem to have had little impact on market sentiment. The dollar weakened and the 10yr yield on US Treasuries edged down to 0.8429%, down from a 4-month high. In Europe, additional curfew and containment measures are taking place and cumulative cases in the US surged past 70,000. As Brexit negotiations continue to heat up, the UK signed a trade deal with Japan.

The prices on the LME were weaker today due to investor risk-off sentiment. Copper prices fell from a two-year high, but remained well supported above $6,860/t and closed at $6,867.50/t. Lead was particularly weak as protracted selling pressure triggered a close at $1,786/t. Zinc was well bid in the first half of the day; however, failed above $2,600/t and closed at $2,558.50/t; the cash to 3-month spread tightened up to -$9.50/t. Aluminium was range-bound, testing the support level of $1,838/t and closing at $1,842.50/t. SHFE aluminium, however, picked up higher, closing at CNY14,725/mt. Nickel was lower on the day, closing at $15,712/t.

Oil futures edged lower today, with WTI and Brent trading at $40.19/bl and $42.03/bl. Precious metals were also on the back foot today; gold and silver trade at $1,897.67/oz and $24.52/oz 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.

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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