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Daily Base Metals Report

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US stocks declined on Friday, falling from all-time highs, as investors weighed on a fresh wave of corporate earnings results. US personal incomes soared in March by the most since 1946, supported by the pandemic relief bills. Meanwhile, the PCE index rose to 2.3% y/y in March, the biggest gain since 2018; a gauge of consumer sentiment continued to strengthen in April. The dollar softened, and the 10yr US Treasury yield fell down to 1.62%. Elsewhere, in Europe, the economy entered a double-dip recession, as it fell by 0.6% in Q1 2021, as most of the economies remained under lockdown restrictions.

Activity on the LME was mixed, with only nickel and lead closing higher. Copper was subject to strong selling pressure, testing the support level of $9,800/t and closing at $9,825/t. Aluminium prices were softer in the second half of the day, closing lower at $2,397/t. Zinc gave back this week’s gains, closing on the back foot at $2,926/t; cash to 3-month spread tightened into -$12.75/t. Lead tested resistance at $2,155/t before closing lower at $2,152/t. Nickel prices rallied, closing higher on the day at $17,674/t.

Oil futures slumped in line with equity markets, with WTI and Brent fell down $63.43/bl and $67.26/bl. Precious metals were softer; gold and silver edged down to $1,767.42/oz and $25.90/oz, respectively.

All price data is from 30.04.2021 as of 17:30

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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.

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