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

Daily Base Metals Report

Read disclaimer

US stocks rose ahead of the jobs data to be released today, which is forecast to show 725,000 new jobs being added in August. Meanwhile, initial jobless claims fell marginally in the week ending August 28, hitting a new pandemic low. The dollar weakened, and the 10yr US Treasury yield held the ground. The yields have remained broadly unchanged since Powell mentioned the possibility of tapering asset purchases this year.

Metals on the LME traded higher yesterday, apart from tin, as risk appetite returned to the market. Lead gained the most ground, breaking above the key resistance level at $2,300/t and closing higher at $2,312.50/t. Next in line was nickel, closing above the key resistance level of $19,400/t at $19,464/t. Cash to 3-month spread weakened into $48.50/t. Aluminium briefly topped $2,730/t; however, resistance at that level triggered a close at $2,695/t. Copper prices were also seen higher on the day, closing at $9,376.50/t. Tin was under pressure, closing below at $33,500/t.

Oil futures continued to edge higher after the OPEC+ unanimous decision to gradually raise output. OPEC increased its output in August as the nations continued to revive supply after the halt seen during the pandemic. WTI and Brent increased to $70.39/bl and $73.31/bl. Precious metals all sold off, with gold and silver falling into $1,808.60/oz and $23.87/oz.

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

All price data is from 02.09.2021 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.

Daily Report Softs Technical Charts

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

Weekly Report FX Options

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

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.