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

Daily Base Metals Report

Read disclaimer

US stocks declined today, with S&P heading for its biggest decline in a month, as rising number of cases threaten the case for economic recovery. Indeed, in the US, the number of daily new cases reached record highs. In the White House, Trump said that he cannot accept parts of the Democrat’s stimulus bill, dimming prospects for aid before the presidential election. US home sales fell 3.5% m/m in September, suggesting that demand is being restrained by low inventory levels while mortgage rates remain at record lows. The dollar edged up to 92.978 and the 10yr yield on US Treasuries fell down to 0.7977%.

Sentiment on the LME was weak today as selling pressure was strong and prices slipped on the downside. Copper was softer and traded towards support at $6,750/t, but closed higher at $6,781/t; prices have continued to fall after the close. Aluminium was the also subject to strong selling pressure breaking through support at $1,828/t to close at $1,827.50/t; cash to 3-month widened out to -$13.94/t. Zinc was weaker as well and tested appetite around $2,520/t, support at this level prompted a close at $2,539.50/t. Nickel fell down $15,400/t, but closed higher in the second half of the day at $15,657/t. Lead closed lower at $1,780.50/t.

Oil futures slumped today on the back of rising number of infections. At the time of writing, WTI and Brent trade at $38.51/bl and $40.42/bl. Precious metals were little changed, with gold and silver trade at $1,904.94/oz and $24.40/oz respectively.


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.

FX Monthly Report July 2021

Monthly commentary covering the FX markets, providing insights on recent developments on select currency pairs. Cryptocurrencies are the focus of this month's FX Monthly report. The report includes a macroeconomic overview as well as desk comments and technical analysis on key currency pairs.

Quarterly Metals Report – Q3 2021

COVID cases are rising across the globe as the delta variant spreads, this is causing some nervousness in financial markets, especially with the higher inflation rhetoric. Commodity prices have fallen since the Fed changed their tune inflation, the dollar has stabilised which has also been a headwind to prices. The summer months are traditionally quieter for metals demand which could prompt metals to consolidate. If the delta variant continues to spread, we may see higher levels of stimulus for longer. As things stand stimulus levels are set to be tapered and this could be brought forward if inflation remains high. We expect markets to remain volatile but on lower volume through the summer months.