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Daily Base Metals Report

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US stock markets rose on Friday on the back of strong economic data adding momentum to market sentiment. The US new home sales rebounded sharply in March, to the highest level since 2006. Meanwhile, a gauge for manufacturing output reached a record high in April, adding to the strong industrial demand backdrop. The dollar retreated and the 10yr US Treasury yield strengthened. From the vaccine front, the world’s first vaccine jab numbers are about to reach 1bn, with Cansino and Pfizer leading the way. The UK composite PMI accelerated at the fastest pace in seven years in April, driven by stronger services.

LME metal prices were well bid today as risk appetite re-emerged. Copper prices were firmer, however, lack of appetite for prices above $9,550/t triggered a close above $9,551.50/t. Nickel prices broke through the resistance of $16,300/t and closed higher at $16,395/t. Aluminium prices were also higher and closed at $2,364.50/t; cash to 3m spreads widened out to -$5.50/t. Zinc prices opened on the front foot today, breaking through the key resistance level of $2,850/t to close at $2,852/t. Lead prices higher down on the day, closing at $2,058/t.

Oil futures rose on robust economic data. WTI and Brent edged up higher to $61.70/bl and $65.58/bl. Gold erased gained as Treasury yields and dollar declined, falling to $1,777.27/oz; silver softened down $26.02/oz.

All price data is from 23.04.2021 as of 17:30


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