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Daily Base Metals Report

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US stocks edged higher yesterday as corporate earnings results outweighed concerns surrounding the rising number of COVID-19 cases. The dollar weakened, and the 10yr US Treasury yield strengthened into 1.2850%. The European central bank rate decision is out today and is expected to remain unchanged. However, president Lagarde heightened the anticipation before the meeting by promising more variations and changes to the policy announcement. Elsewhere, the UK Treasury paid $11.8bn in interest in June, the record highs, as heightened inflation pressures take a toll on public finances.

LME trading saw mixed appetite yesterday. Copper has continued to find support above $9,250/t and broke higher to close at $9,347/t. The cash to 3-month spread tightened out to -$31.51/t. Lead was also stronger on the day, testing the support level at $2,310/t before closing at $2,336.50/t. The cash to 3-month spread opened at -$3.50/t back but closed at $3.00/t. Elsewhere, nickel rejected $18,700/t and closed on the back foot at $18,580/t. Zinc was down on the day and closed at $2,929/t.

Oil futures strengthened after the API report pointing to an unexpected US crude inventory gain. WTI and Brent rallied to $69.81/bl and $71.79/bl. Precious metals were mixed: gold fell down to $1,804.30/oz, and silver gained ground to $25.20/oz.

All price data is from 21.07.2021 as of 17:30

Disclaimer

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