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Daily Base Metals Report

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US stocks rallied today, with the S&P 500 soaring to a new record high of 3,600, up 3.6% on the day, after positive news about a coronavirus vaccine developed by Pfizer. Similarly, credit markets picked up to pre-pandemic highs after the vaccine news along with a continued reaction to a Biden win in the US presidential election. The dollar strengthened to 92.833 and the 10yr yield on US Treasuries also picked up to 0.9508%. Elsewhere, the EU is set to trigger tariffs worth $4bn on the US goods this week as a retaliation to illegal subsidies to Boeing.

Sentiment on the LME has been predominantly negative, mostly a reaction to Joe Biden’s win in the US presidential election, and prices slipped on the downside. Copper was weak and traded towards support at $6,910/t, the market LME closed at $6,916/t, and prices have continued to fall after the close. Lead was the also subject to strong selling pressure breaking through support at $1,830/t to close at $1,833/t. Aluminium was also marginally weaker as well and tested appetite around $1,890/t, support at this level prompted a close at $1,893.50/t. Nickel and zinc closed higher on the day at $15,754/t and $2,641.50/t respectively.

Oil futures skyrocketed alongside stock markets, with WTI up 11% on the day. At the time of writing, WTI and Brent trade at $40.55/bl and $42.64/bl. Precious metals were all lower on the day, with gold and silver edging down to $1,863.46/oz and $23.80/oz.

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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