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Daily Base Metals Report

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US stocks traded higher near record highs as investors await the key inflation report, which is expected to grow by 4.7% y/y in May, up from 4.2%; we expect the Fed to say inflation is transitionary but we look for clues to changes in monetary policy direction. Meanwhile, the Senate passed the bill to invest %250nm in bolstering US manufacturing and technology to compete with China. The dollar shot up to beat day’s highs and the 10yr US Treasury yield retreated further below 1.4705% for the first time since March. Chinese shares edged higher, as factory-gate inflation hit the highest level since 2008, but consumer price growth remains subdued in May.

Metals on the LME have traded higher today, apart from copper, as the risk appetite in the markets softened from the previous day. Nickel gained the most ground, testing the level at $18,200/t but closing below at $18,136/t. Next in line was lead, closing just below the key resistance level of $2,200/t at $2,199/t; cash to 3-month spread strengthened into -$10.89/t. Zinc briefly topped $3,030/t; however, resistance at that level triggered a close at $3,019/t. Aluminium prices remained unchanged on the day, closing at $1,786/t. Copper was under pressure, closing below $10,000/t at $9,978.50/t.

Oil futures slipped as US fuel stockpiles grew, muting demand outlook. WTI and Brent fell down to $69.71/bl and $72.08/bl. Precious metals were mixed, with gold and silver trading at $1,890.89/oz and $27.84/oz, respectively.

All price data is from 09.06.2021 as of 17:30

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