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Daily Base Metals Report

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US stocks rose alongside the government bond price correction as investors assessed the inflation data. The consumer price index rose by 0.6% m/m in May, the largest increase since June 2009, also above expectations as inflationary risks become more established in a strengthening economy. Meanwhile, US initial jobless claims fell for the sixth straight week in the week ending June 5th, in line with the improving economic conditions. The dollar was marginally lower on the day and the 10yr US Treasury softened into 1.4755%. Elsewhere, the ECB renewed its pledge to continue the faster pace of bond buying to support the recovering economy.

Activity on the LME was mixed today with only aluminium and nickel closing higher. Copper was subject to moderate selling pressure, testing the support level of $9,800/t and closing at $9,890/t. Zinc prices were softer in the second half of the day, closing lower at $2,995/t. Lead gave back this week’s gains, closing on the back foot at $2,174.50/t; cash to 3-month spread tightened into -$9.00/t. Aluminium tested resistance at $2,478/t before closing lower at $2,476/t. Nickel gained ground, closing near the day highs at $18,283/t.

Oil futures strengthened today with higher inflation data; WTI and Brent increasing to $70.28/bl and $72.57/bl. Precious metals were mixed, with gold and silver edging higher to $1,893.47/oz and $27.91/oz respectively.

All price data is from 10.06.2021 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.

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.

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