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Daily Base Metals Report

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US stocks slipped today on the back of the conflict between the Fed and the White House. Indeed, Treasury Secretary Mnuchin is trying to revive stalled stimulus talks with congressional Democrats, the first sign in weeks of possible movement on virus relief. On vaccine news, Gilead Sciences vaccine is now being advised against by the authorities, and Pfizer plans to request an emergency authorisation which could take up to 3 weeks for FDA approval. European stocks headed for the third week of gains and Asian companies’ performance was mixed. The EU has warned the UK that ‘not enough has been compromised’ to overcome obstacles of a smooth Brexit deal.

LME base metals extended gains today, led by lead and copper, which gained 2.48% and 2.42% on the day respectively. Copper prices edged higher to the resistance level of $7,295/t before closing below at $7,277.50/t. SHFE copper was also higher on the day, closing at CNY53,080/mt, breaking contract highs. Nickel was well bid, edging up to the $16,160/t level, to close just below the day's highs at $16,151/t. Lead gained the most ground, testing the resistance just below at $2,040/t and closed at $2,014.50/t; the cash to 3-month spread tightened into -$13.75/t. Zinc and tin prices were both higher today, testing the $2,800/t and $18,885/t, and closing at $2,793.50/t and $18,795/t respectively. Aluminium finished on the back foot, closing at $1,993/t.

Oil futures closed the week on the front foot, driven by continued optimism surrounding vaccine development. At the time of writing, WTI and Brent trade at $41.67/bl and $44.37/bl. Precious metals were mostly higher; gold and silver edged up to $1,872.42/oz and $24.29/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.

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