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Daily Base Metals Report

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US stocks closed the week on the back foot, as investors weighed on the prospects of economic data and earnings reports. US manufacturers and service providers advanced to a fresh record in May, mainly driven by the expansion of service business activity. The dollar gained ground and the 10yr US treasury yield strengthened to 1.6267%. European shares were higher as Europe’s service PMI continue to edge higher as manufacturing losses steam. Meanwhile, ECB President Christine Lagarde said that any major changes to stimulus measures are unlikely when policymakers meet in June.

Activity on the LME was mostly down today, as the dollar gained ground, only with zinc closing higher. Copper was subject to strong selling pressure, falling below the key support level of $9,900/t and closing at $9,881.50/t. Copper cash to 3-month spread tightened to -$14.00/t. Nickel and aluminium prices were softer, closing at $16,791/t and at $2,370/t respectively. Lead lost ground in the second half of the day, closing lower on the day at $2,188/t. Zinc was supported above $2,960/t and closed at $2,971/t.

Oil futures edged higher for the first time since Monday, while markets weigh on Iran prospects. WTI and Brent strengthened up to $63.97/bl and $66.85/bl. Precious metals were softer, with gold dropping from a 4-month high to $1,871.30/oz; silver fell down to $27.23/oz.

All price is from 21.05.2021 as of 17:30

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.

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