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Daily Base Metals Report

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Stock markets remained well supported today as they reached new highs. We attribute this to investors remaining hopeful on the federal stimulus bill. The US jobs market was slightly weaker than expectations after NFPS missed the forecast at 245,000 for November, unemployment did fall to 6.7%. Hourly earnings improved by 0.3% M/M, up 4.4% Y/Y, as the labour force participation rate declined to 61.5% in November. US yields were higher today and the dollar index has consolidated today. Brexit negotiations continue as the UK and EU struggle to come to an agreement on, ‘access to British fishing wasters, the competitive level playing field for business, and how any overall agreement is enforced’ (Bloomberg).

LME metals were higher again today except for lead, Nickel led the charge breaking above resistance at $16,000/t, to test appetite above $16,400/t, prices failed above this level and closed at $16,399/t. Copper was once again well bid and challenged resistance at $7,775/t, but prices closed at $7,60.50/t, still firmly on the front foot. Aluminium gained ground as well, but traders rejected prices above $2,050/t and closed at $2,044/t. Zinc was largely unchanged, closing at $2,757/t and lead edged lower to close at $2,027.50/t.

Energy prices have fallen from the intraday highs, with WTI and Brent trading at $46.08/bl and $49.16/bl. Silver was marginally stronger today and trades at $24.13/oz and gold at $1,833.27/oz.


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