1. Reports
  2. Daily Base Metals Report
Non-independent Research

Daily Base Metals Report

Read disclaimer

The US stocks continued to fall as a renewed surge of Treasury volatility spurred the yields yesterday. The 10yr US Treasury yield approached 1.5%, and bonds now price the highest 5yr inflation expectations since 2008. The dollar strengthened marginally. American services providers slowed to a nine-month low in February, when severe winter weather gripped much of the nation and limited activity. Meanwhile, the number of employees at US businesses rose by less than expected in February, pointing to a slow labour market recovery despite the falling number of infections.

Metals on the LME came under heavy selling pressure today, with nickel the worst affected. Protracted selling pressure caused prices to fall by 7.00% on the day, as Russia, the world’s biggest refined metal producer, reported progress in restoring the suspended mine; the metal found support at $17,200/t and close at $17,417/t. Zinc was next in line as prices struggled above $2,860/t to close at $2,787/t. Aluminium managed to find support at $2,190/t and closed at $2,200/t, with the cash to 3-month spread widened out to -$3.50/t. Copper was marginally lower on the day, but was supported above $9,100/t and closing at $9,101.50/t. Lead was weaker as well today closing at $2,051/t.

Oil futures continued to rise ahead of the OPEC+ meeting today. At the time of writing, WTI and Brent trade at $61.83/bl and $64.69/bl. Precious metals were all lower yesterday, with gold and silver falling down to $1,717.58/oz and $26.35/oz respectively.

*All price data is from 03.03.2021 as of 17:30

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.

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.

Sign-up to get the latest Non-independent research

We will email you each time a new report has been published.

You might also be interested in...

Daily Report FX

A morning report covering fundamentals and technicals for USD, EUR, GBP, JPY, and CHF.

Daily Report Softs Technical Charts

Technical analysis and charts for the key sugar, cocoa and coffee contracts.

Weekly Report FX Options

Our FX Options Report contains commentary and analysis covering OTC currency option pricing, volatility and positioning. 

Quarterly Metals Report – Q3 2022

Our analysts provide an in-depth analysis of the metals market and current macroeconomic conditions. The environment has weakened significantly as growth fears rise amid persistent high inflation. Central banks are data-dependent, which could mean they slow rate hikes as growth starts to slow. This has meant a downside to the US 10yr yield, but also we see a downside to rate hikes in Q4. Europe will likely enter a recession before the US and take longer to recover, but material availability is significantly lower, shown by low inventories.

FX Monthly Report June 2022

Monthly commentary covering the FX markets, providing insights on recent developments on select currency pairs. This month we look into the JPY and the pressure the BOJ is under to change their monetary policy as JPY continues to weaken against major currencies. Economic data is weakening and inflation is less of a problem in Japan, but yields continue to test the cap.