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Daily Base Metals Report

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US stocks extended their gains to all-time highs as strong economic data and corporate earnings performance bolstered optimism. The US consumer sentiment rose in April following another round of fiscal support and accelerating job growth. Housing starts rebounded sharply in March to the 2006 levels, as residential construction is getting back on track. The dollar softened and the 10yr Treasury yield found support at 1.58%, while the MSCI World index reached record highs. China grew at a record rate of 18.3% y/y in Q1 2021, as consumer spending rose by more than expected.

LME stocks were mixed despite record growth figures in China fuelling global economic recovery. Lead rallied to the $2,060/t resistance level in the second half of the day; however, failed above that level and closed at $2,046/t. Tin was also firmer and managed to close just off the day’s highs of $26,700/t at $26,616/t. Copper and aluminium prices were subject to strong selling pressure, closing on the back foot at $9,211/t and $2,315/t respectively. Nickel sold off sharply, finding support supported above the $16,185/t level and closing at $16,363/t; cash to 3-month spread softened into -$44.25/t. Iron ore picked up to 4-month highs as China production booms; the metal closed at CNY1,051.50/mt.

Oil futures fell on Friday but still closed the best week since early March. WTI and Brent fell down to $63.17/bl and $66.82/bl. Precious metals were all higher, with gold and silver edging up to $1,777.04/oz and $26.02/oz respectively.

All price data is from 16.04.2021 as of 17:30


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