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Daily Base Metals Report

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US stocks rallied globally as interest in technology stocks picked up sharply on believes that no tax hikes or major changes that would derail the sector. The dollar weakened out to 92.755, the weakest point since September 2018 lows, and the 10yr yield on US Treasuries strengthened up to 0.7847%. The Fed will meet today at 7pm to announce policy decisions, and are unlikely to change their strategy with the election still in the balance. US productivity gains softened in Q3, up 4.9% annualised rate, as the number of hours increased nationwide. Initial jobless claims picked up by more than forecast in the week ending October 31st, stifling a smooth labour market recovery. Elsewhere, the UK extended its furlough scheme until March 2021, in hopes of providing stability for the economy that just started the second round of nationwide lockdown measures.

LME metal prices were on the front foot today, apart from aluminium and lead, which closed lower on the day at $1,897.50/t and $1,847.50/t respectively. Nickel prices were well supported and tested resistance at $15,560/t and closed higher at $15,561/t. Zinc was well bid in the second half of the day, testing the resistance level of $2,620/t, before closing below at $2,615.50/t. Copper prices remained supported above $6,800/t before closing at $6,862.50/t; the cash to 3-month spread widened out to -$10.00/t. SHF copper prices, however, softened, closing at CNY51,540/mt. Iron ore was range-bound but closed higher on the day at CNY783/mt.

Oil futures edged lower today on the back of the US election uncertainty, with WTI and Brent trading at $38.68/bl and $40.85/bl at the time of writing. Precious metals were all higher today, with gold and silver trading up to $1,945.56/oz and $24.98/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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