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Daily Base Metals Report

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US stocks edged higher today as investors weighed in on Pfizer results that show to be 95% effective and passing all safety checks. With many vaccine results now released and producers asking for expedited approval, markets expect a nationwide use of a vaccine in early 2021. The dollar weakened out to 92.256 and the 10yr yield on US Treasuries strengthened up to 0.8717%. The pound gained today on the back of UK inflation raising by 0.7% y/y, above expectations. Additionally, Boris Johnson unveiled a new green plan to zero out Britain’s greenhouse gas pollution by 2050.

LME metals have been mixed, with nickel and tin lower on the day. Copper prices edged higher today, testing $7,140/t level to close below at $7,088.50/t, the cash to 3-month spread has tightened once again to -$18.00/t. Aluminium was well-bid above $1,980/t and closed just off the day’s high at $1,998/t. Lead was mostly range-bound and tested the resistance level at $1,960/t before closing at $1,948.50/t. Zinc was stronger today, closing at $2,747/t. Nickel traded lower to the $15,750/t support level and closed on the front foot at $15,809/t.

Oil futures trended higher on coronavirus vaccine promises, with WTI and Brent trading at $42.13/bl and $44.69/bl. Precious metals were mostly higher, and gold and silver trade at $1,881.72/oz and $24.55/oz respectively at the time of writing.

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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