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Daily Base Metals Report

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US stocks edged higher as investors weighed on the corporate earnings report. The inoculation programme remains on track in the US despite the pause in the use of the J&J vaccine. The dollar weakened and the 10yr US Treasury yield strengthened up to 1.6394%. In the meantime, the EU is still maintaining its goal to vaccine 70% of adults by the end of the summer. The US Fed Reserve Beige Book is being released today.

Metals on the LME extended their advance today amid a weaker dollar, with copper posting the biggest daily gain, up 2.16%, and closing at $9,074.50/t. Aluminium prices were firmer, breaking above $2,320/t to close at $2,323.50/t; cash to 3-month spread widened out to -$16.50/t. Nickel prices tested the $16,400/t resistance level and closed at $16,378/t. Zinc was on the front foot, trading to $2,830/t, and closing at the day’s high at $2,823/t. Lead prices firmed in the second half of the day, testing $2,730/t to close at $1,996/t.

Oil futures rallied the most since March with declining crude stockpiles. WTI and Brent edged up higher to $63.18/bl and $66.67/bl. Precious metals were mixed, with gold falling down to $1,736.05/oz while silver was up to $25.39/oz.

All price data is from 14.04.2021 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.

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COVID cases are rising across the globe as the delta variant spreads, this is causing some nervousness in financial markets, especially with the higher inflation rhetoric. Commodity prices have fallen since the Fed changed their tune inflation, the dollar has stabilised which has also been a headwind to prices. The summer months are traditionally quieter for metals demand which could prompt metals to consolidate. If the delta variant continues to spread, we may see higher levels of stimulus for longer. As things stand stimulus levels are set to be tapered and this could be brought forward if inflation remains high. We expect markets to remain volatile but on lower volume through the summer months.