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Daily Base Metals Report

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US stocks jumped to record highs once again on the back of positive economic data. Initial jobless claims fell to 576,000 in the week ended April 10, the lowest level since March 2020, continuing to support the recovering labour market outlook. US retail sales jumped by 9.8% in March, the second-largest data back to 1992. At the same time, US factory output rose by 2.7% in March after a fall of 3.7% in February. The 10yr US Treasury yield fell to the lowest level in nearly a month and the dollar fluctuated. The ruble slid after the Biden administration imposed new sanctions on some Russian debt.

LME metal prices were well bid today as risk appetite persevered. Aluminium prices were firmer, however lack of appetite above $2,360/t, triggered a close at $2,339/t. Nickel prices tested the resistance of $16,400/t and closed below at $16,364/t. Copper saw the biggest growth, trading up to $9,300/t, and closing at the day’s high at $9,284/t; cash to 3-month spread tightened marginally to $10.49/t. Zinc prices opened on the front foot today, breaking through the key resistance level of $2,860/t to close at $2,864.50/t. Iron ore prices were higher on the day, closing at CNY1,036.5/mt.

Oil futures fluctuated after the recent jump. WTI and Brent traded at $63.13/bl and $66.67/bl. Precious metals were all higher, with gold and silver trading up to $1,768.53/oz and $25.97/oz respectively.

All price data is from 15.04.2021 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.

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.

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