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Daily Base Metals Report

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US stocks declined today as positive economic performance raised inflation worries once again. US retail sales surged in January, increasing by 5.3% m/m, as stimulus checks encouraged spending. US manufacturing output rose by more than forecast in January, the fourth straight monthly incline as factories continue to recover from the pandemic disruptions. Meanwhile, US homebuilder confidence fell to a four-month low as house prices and construction costs continue to rise. The dollar strengthened and the 10yr US yield briefly climbed as high as 1.33%, the highest in almost a year.

Activity on the LME was mixed today with only aluminium and tin closing higher. Zinc was subject to strong selling pressure, testing the support level of $2,791/t and closing at $2,816/t. Copper prices were softer in the second half of the day, closing lower at $8,390/t. Nickel gave back this week’s gains, closing on the back foot at $18,760/t; cash to 3-month spread tightened into -$40.00/t. Aluminium tested resistance at $2,117/t before closing lower at $2,115/t. Tin prices remained range-bound, closing slightly higher on the day at $24,570/t.

Oil futures pared gains after Saudi promising to boost output. At the time of writing, WTI and Brent trade at $60.36/bl and $63.79/bl. Precious metals were mixed; silver continued to climb, up to $27.26/oz, with gold down on the day to $1,776.30/oz.

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.

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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.

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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