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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.


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