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Daily Base Metals Report

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US stocks fluctuated as yields continued to decline on a mixed inflation outlook. US consumer sentiment rose so far in June by more than expected as the outlook for the economy continues to improve amid rising vaccination numbers. The dollar rallied and the 10yr US Treasury yield held the ground after testing 1.4266% once again. European stocks rallied, as investors assessed the impact of continued policy support. UK GDP gathered momentum in April, as most of the retail reopened during the month. Elsewhere, Russia raised interest rates for the third consecutive time as it said more will be necessary to tackle a spike in inflation.

Sentiment on the LME was mixed once again. Copper prices were well-supported above $10,000/t, breaking above the $10,100/t level, but closed lower at $10,003.50/t. Copper cash to 3-month spread has widened to -$28.40/t. Zinc trended higher to test the resistance at $3,050/t before closing below at $3,044.50/t. Lead consolidated, closing at 2,205/t. Aluminium was softer, closing at $2,464.50/t. Nickel was also softer, breaking below the key support level of $18,300/t to close at $18,227/t.

Oil futures rose amid improving demand outlook; WTI and Brent picked up to $70.90/bl and $72.81/bl. Precious metals softened, with gold and silver falling to $1,877.53/oz and $27.95/oz respectively.

All price data is from 11.06.2021 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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