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Daily Base Metals Report

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US stocks declined yesterday after the latest release of corporate earnings results. US home prices surged once again, beating the 30yr highs, as shortage of available homes and low mortgage rates fuel the market. US consumer confidence rose for the sixth straight month in July to a fresh pandemic high as the economy grows more optimistic about the future. The dollar weakened, and the 10yr US Treasury yield fell down to 1.23% levels once again. The Fed meeting is today, and markets believe that the interest rate will remain unchanged, with the focus shifting to bond purchases. In China, the yuan fell to April lows, and the bonds sold off as unconfirmed rumours showed that the US funds plan to offload China and Hong Kong assets.

Sentiment on the LME has been predominantly negative, and prices slipped on the downside. Copper was weak and traded towards support at $9,650/t; the market closed at $9,758.50/t. Nickel was the subject to strong selling pressure testing the support at $19,200/t to close at $19,357/t. Aluminium was also weaker as well and tested appetite around $2,480/t, support at this level prompted a close at $2,490/t; cash to 3-month spread widened out to -$3.50/t. Lead and zinc closed lower on the day at $2,338.50/t and $2,982.5/t, respectively.

Oil futures steadied yesterday, as the spread of the delta variant weighs on near term demand. WTI and Brent traded at $71.78/bl and $74.58/bl. Silver sold off to test $24.62/oz, and gold was up marginally, edging up to $1,802.04/oz.


All price data is from 27.07.2021 as of 17:30


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