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Daily Base Metals Report

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US stocks climbed today supported by a rise in small cap companies that remain resilient to continued spread of COVID-19. Globally, the number of new daily infections surpassed 1.1m, with cases in the US continuing to climb, while in Europe and the UK, the new daily cases seem to have tailed off. Nevertheless, there is now a possibility, especially in Europe, about curbs extending through Christmas. On the economic front, US consumer sentiment declined sharply to a three-month low in November. Meanwhile, US producer price index decelerated in October, less than forecast, in line with continuing spread of the infections as well as volatility coming from US elections. China is considering withdrawing monetary stimulus injected into the economy to rebalance fiscal policies for the year ahead.

LME metals have been mixed, with nickel lower on the day. Copper prices continued to firm breaking above $7,000/t, the move last seen in the previous week, the levels last seen in June 2018, to close at $6,982.50t; the cash to 3-month spread has tightened once again to -$16.20/t. Zinc was bid below $2,660/t and closed below at $2,629/t. Aluminium was range-bound, but closed higher on the day at $1,932/t. Lead remained supportive above $1,890/t and closed at $1,893/t. Nickel prices traded lower in the first half of the day, testing the $15,750/t support level, before closing higher at $15,892/t.

Oil future fell today on gloomy economic outlook, with WTI and Brent trading down to $40.44/bl and $43.01/bl. Precious metals were mixed, with gold and silver edging higher to $1,892.34/oz and $24.69/oz respectively.

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