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Daily Base Metals Report

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US stocks jumped to record highs once again, driven by positive corporate earnings results. Markit flash index pointed to a fall in the service industry, falling to a five-month low, meanwhile, the manufacturing gauge climbed to a fresh record. The dollar gained ground and the 10yr US Treasury yield strengthened to 1.2847%. UK retail sales surged in June as consumers spent more in shops during the Euros. In Europe, private sector activity jumped to the highest in two decades due to the relaxation of lockdown restrictions across the bloc.

Metals on the LME have traded higher today, apart from lead, as risk appetite prevailed. Nickel gained the most ground, breaking above the key resistance level at $19,300/t and closing higher at $19,372/t; the metal continued to trade higher after the close. Next in line was zinc, closing just above the key resistance level of $2,970/t at $2,963/t. Cash to 3-month spread strengthened into -$15.50/t. Aluminium briefly topped $2,510/t; however, resistance at that level triggered a close at $2,502.50/t. Copper prices were also seen higher on the day, closing at $9,516/t. Lead was under pressure, closing below $2,380/t at $2,375/t.

Oil futures steadied with demand outlook outweighing the worries surrounding the spread of the virus. WTI and Brent traded at $71.73/bl and $73.72/bl. Precious metals were all softer, with gold and silver falling down to $1,802.14/oz and $25.20/oz respectively.

All price data is from 23.07.2021 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.

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