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Daily Base Metals Report

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US stocks soared today on the back of the hopes of Democratic control of the Congress, which could set the scene for higher federal spending. Democrats won one of the Senate seats so far, with the other result possibly published on Friday. US private jobs data in December pointed to the first decline since April 2020, highlighting the immediate impact of the spread of infections on hiring decisions. NYSE is continuing to prevaricate about whether to delist three major Chinese telecommunication firms. The dollar fluctuated, and 10yr US treasury yield strengthened up to 1.0524%, the level last seen in March 2020.

Sentiment on the LME was mixed once again. Copper prices were well-supported above $8,050/t, breaking above the $8,100/t level, the eight-year high, and closing at $8,037.50/t. Copper cash to 3-month spread has tightened to -$7.00/t. Zinc trended higher to test the resistance at $2,870/t before closing below at $2,860/t. Aluminium was softer, closing at $2,038.50/t. Lead lost the most ground, breaking below the key support level of $2,060/t to close at $2,062.50/t. Nickel was also weaker today, closing at $17,773/t.

Oil futures advanced today as shrinking US crude inventories confirmed the expectations of tighter supply. The US did not import any oil from Saudi Arabia for the first time in 35 years last week. At the time of writing, WTI and Brent trade at $50.67/bl and $54.53/bl. Precious metals were all down on the day, with gold and silver edging down to $1,906.60/oz and $26.91/oz respectively.


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