1. Reports
  2. Daily Base Metals Report
Non-independent Research

Daily Base Metals Report

Read disclaimer

US equity index futures opened the week on the front foot, as investors weighed on the possibility of another hawkish stance by the Fed, despite Friday’s US jobs report that pointed to continued recovery in the labour market, but not strong enough to warrant the earlier-than-expected stimulus tapering. The dollar softened and the 10yr US Treasury yield edged higher to 1.4238%. Markit services PMI for China was expansionary but grew at the slowest rate since April 2020, meanwhile in Europe, continues to grow, with the June figure at the 15-year high.

LME metal prices were on the front foot today, apart from aluminium and lead, which closed lower on the day at $2,556/t and $2,286.50/t respectively. Copper prices were well supported and tested resistance at $9,535/t and closed lower at $9,511/t. Nickel was well bid, testing the resistance level of $18,500/t, before closing below at $18,412/t; the cash to 3-month spread widened out to -$0.50/t. Zinc prices remained supported above $2,940/t before closing at $2,945.50/t. Iron ore surged higher during the day to close at CNY1,349/mt.

Oil futures rose for the fourth straight day after OPEC+ producers called off another meeting to discuss UAE’s position on oil supply. WTI and Brent traded at $75.95/bl and $76.86/bl. Precious metals were mixed, with gold higher at $1,790.90/oz and silver down to $26.45/oz.

For more in-depth analysis of base and precious metals, please see our Quarterly Metals Report.

All price data is from 05.07.2021 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.

This report is not subject to any prohibition on dealing ahead of the dissemination of investment research. Accordingly, the information may have been acted upon by us for our own purposes and has not been procured for the exclusive benefit of customers. Sucden Financial believes that the information contained within this report is already in the public domain. Private customers should not invest in these products unless they are satisfied that the products are suitable for them and they have sought professional advice. Please read our full risk warnings and disclaimers.

Sign-up to get the latest Non-independent research

We will email you each time a new report has been published.

You might also be interested in...

Daily Report FX

A morning report covering fundamentals and technicals for USD, EUR, GBP, JPY, and CHF.

Weekly Report FX Options

Our FX Options Report contains commentary and analysis covering OTC currency option pricing, volatility and positioning. 

Daily Report Softs Technical Charts

Technical analysis and charts for the key sugar, cocoa and coffee contracts.

Quarterly Metals Report – Q3 2022

Our analysts provide an in-depth analysis of the metals market and current macroeconomic conditions. The environment has weakened significantly as growth fears rise amid persistent high inflation. Central banks are data-dependent, which could mean they slow rate hikes as growth starts to slow. This has meant a downside to the US 10yr yield, but also we see a downside to rate hikes in Q4. Europe will likely enter a recession before the US and take longer to recover, but material availability is significantly lower, shown by low inventories.

FX Monthly Report June 2022

Monthly commentary covering the FX markets, providing insights on recent developments on select currency pairs. This month we look into the JPY and the pressure the BOJ is under to change their monetary policy as JPY continues to weaken against major currencies. Economic data is weakening and inflation is less of a problem in Japan, but yields continue to test the cap.