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Daily Base Metals Report

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US stocks softened on Friday after the lacklustre economic data added to the concerns surrounding the sustainability of economic expansion. Retail sales grew at 0.6% in June, beating the estimates, with a broad gain recorded across the categories. The dollar strengthened and the 10yr US Treasury yield gained ground after three subsequent losses last week. University of Michigan’s sentiment index fell to a 5-month low of 80.8 in July, below estimates, as mounting concerns surrounding rising prices led to a sharp deterioration from the demand side.

 LME metals have been mixed yesterday. Nickel prices edged higher today, supported above $18,900/t to close at $19,070/t, the cash to 3-month spread has widened out to -$10.00/t. Zinc was well bid in the second half of the day, testing $3,010/t but closed lower at $3,003/t. Copper was mostly range-bound and broke through the support level at $9,450/t before closing at $9,427/t. Aluminium traded lower to close on the back foot below at $2,488.50/t. Lead was also weaker today, closing at $2,320/t.

Oil futures edged higher but poised for the biggest weekly loss since March as the markets weighed on the prospects of higher supply from the OPEC+. WTI and Brent consolidated into $72.07/bl and $73.82/bl. Precious metals were all weaker, with gold and silver falling down to $1,814.30/oz and $25.72/oz.

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All price data is from 16.07.2021 as of 17:30

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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.

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