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Daily Base Metals Report

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US stocks fluctuated as investors weighed on the latest release of the corporate earnings reports, while awaiting additional guidance from the Fed. The Fed is expected to maintain expansive monetary support even as the economy continues to recover. In the meantime, President Biden is set to unveil the $1.8tr family aid plan, funded in large by the richest. The dollar sold off to test 90.82 and the 10yr US Treasury yield picked up higher. US GDP figures are out today and are expected to grow by 6.7% q/q.

LME metal prices were all on the front foot yesterday. Aluminium prices were well supported in the second half of the day and tested resistance at $2,405/t and closed just off the highs at $2,399.50/t. Copper was well bid, testing the resistance level of $9,900/t, before closing below at $9,876/t. SHFE copper, however, was lower on the day, closing at CNY71,670/mt. Nickel closed higher on the day at $17,429/t; cash to 3m spread widened out to -$35.00/t. Zinc and tin consolidated, closing at $2,919.50/t and $28,539/t respectively. Lead prices strengthened to close at $2,102.50/t.

Oil futures rose after the OPEC+ expressed confidence regarding the demand outlook, accompanying it with plans to boost supply. WTI and Brent picked up higher to $64.23/bl and $67.63/bl. Precious metals edged lower down to $1,775.60/oz and $26.11/oz, respectively.

All price data is from 28.04.2021 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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