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Daily Base Metals Report

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US stocks fell from all-time highs yesterday despite positive corporate earnings results so far. US home prices soared the most in 15 years, as low mortgage rates and insufficient property inventory created a tight housing market. US consumer confidence rose sharply in April, reaching a February 2020 high, as people grew more confident about the economy and labour conditions. Positive market data is unlikely to shift the Fed’s view on monetary policy stance. The dollar gained ground, and the 10yr Treasury yield hovered below 1.60%. Elsewhere, Germany lifted its growth forecast to 3.5% in 2021 and believed in strong consumer spending once the pandemic is under control.

Metals markets were mostly higher today, with only aluminium down on the day. Copper extended the rally up to $9,965/t on the back of Biden’s infrastructure package; the metal closed at $9,855.50/t. Zinc struggled to gain a footing above the $2,940/t but closed higher on the day at $2,925.50/t. Nickel prices gained the most, with the market breaking above $16,900/t to close at $16,963/t; the spread tightened and settled at -$30.00/t. Lead was range-bound and closed higher on the day at $2,090/t. Aluminium was weaker today and failed above $2,400/t in the second half of the day, causing a close at $2,396/t.

Oil futures climbed after OPEC+ stated that it expects a strong long-term demand recovery. Meanwhile, an oil tank spilt oil into the sea near one of China’s key ports. WTI and Brent rose up to $62.25/bl and $65.81/bl. Precious metals were mixed, with gold edging lower to $1,778.25/oz, while silver is up to $26.37/oz.

All price data is from 27.04.2021 as of 17:30

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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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