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Daily Base Metals Report

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US stocks rose on Wednesday as a positive economic outlook continued to outweigh inflationary concerns. The US service PMI is out today and is forecast to remain in line with the previous month level. The dollar was stronger ahead of the Fed comments and the Beige book release; the 10yr US Treasury yield softened to 1.5878%. Digital currencies continue to gain pace, as central banks are toying with the idea of introducing digital versions of their currency, in particular, the ECB stated that countries that do not introduce the technology may face financial systems and monetary autonomy threats. Elsewhere, Turkish President Erdogan pleaded for lower interest rates despite the rising level of inflation, sending the local currency to test 8.80.

Activity on the LME was mixed today with copper, aluminium and lead closing lower. Nickel was well bid, but failed above $18,350/t and closed at $18,236/t. Zinc was also firmer and managed to close just below the day’s highs at $3,082.50/t. Tin tested the resistance of $31,000/t in the first half of the day before closing at $30,845/t. Aluminium prices were marginally weaker on the day, closing on the back foot at $2,444/t. Copper edged lower down to the support level at $10,100/t and closed higher at $10,147.50/t; cash to 3-month spread widened out to -$16.85/t.

Oil futures extended their gains, after reaching a 2018 peak on Tuesday, on a bullish demand outlook. WTI and Brent edged up higher to $68.57/bl and $71.08/bl. Precious metals were mixed, with gold and silver gaining foothold up to $1,905.80/oz and $28.09/oz, respectively.

All price data is from 02.06.2021 as of 17:30


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