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Daily Base Metals Report

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US stocks climbed today, led by technology companies’ performance. Meanwhile, President Joe Biden is set to push through the $1.9tr COVID-19 relief package, meanwhile, the Republicans are opposing him with a much smaller counter-offer. The dollar strengthened, and the 10yr US Treasury yield fell down to 1.0621%. China’s manufacturing PMI slipped for a second month in January, while remaining in the expansionary territory, as the sector performance slows. Likewise, the US ISM manufacturing PMI index finished the month at 58.7, after 60.5 in a prior month. Russia’s GDP performance shrunk by 3.1% in 2020, the biggest slump since 2009, however above market expectations, as the country chose not to reimpose the lockdown measures for the second half of the year.

Activity on the LME was mixed today with lead, nickel and tin closing higher. Copper was subject to moderate selling pressure, testing the support level of $7,765/t and closing at $7,798.50/t, on the back of weaker-than-expected China’s manufacturing data. Aluminium prices were softer in the second half of the day, closing lower at $1,969/t. Nickel prices took back last week’s losses on the signs of easing supply glut, closing higher at $17,860/t; cash to 3-month spread widened out to -$45.00/t. Tin tested resistance at $23,100/t before closing lower at $23,103/t. Lead prices were more range-bound, closing marginally higher on the day at $2,036.50/t.

Oil futures gained ground on hopes of stronger demand and supply curbs, as Saudi’s cuts went into effect. WTI and Brent are seen trading at $53.00/bl and $55.90/bl. Silver briefly topped $30/oz as the retail investor frenzy swept through the markets; at the time of writing, gold and silver trade at $1,860.90/oz and $28.62/oz respectively.

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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.

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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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