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Daily Base Metals Report

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US stocks edged higher yesterday on the back of positive economic data. US initial jobless claims fell to 310,00 in the week ending September 4th, the biggest weekly drop since June, a strong sign of labour market recovery. The Fed’s Beige Book showed that economic activity in the US moderated from early July through August as consumers became wary of the spread of the delta variant. The dollar and the 10yr US Treasury yield both softened. Meanwhile, the ECB decided to slow down the bond purchases marginally below the current EUR80bn a month programme, however, Lagarde insisted that it should not be viewed as a tapering measure.

LME metal prices were well bid yesterday, supported in part by China’s surge in factory-gate inflation. Copper prices were firmer; however, a lack of appetite for prices above $9,400/t triggered a close at $9,387.50/t. Nickel prices broke through the resistance of $20,100/t and closed higher at $20,190/t. Zinc prices were also firmer and closed at $3,075.50/t; cash to 3m spreads tightened up to -$14.25/t. Lead prices opened on the front foot yesterday, breaking through the key resistance level of $2,295/t to close at $2,298.50/t. Tin gained the most ground, closing at $33,300/t.

Oil continued to gain ground on the back of a decline of the US inventories in the wake of Hurricane Ida. WTI and Brent were mixed, trading at $69.36/bl and $72.57/bl. Gold and silver trended higher to $1,791.19/oz and $24.03/oz.

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

All price data is from 09.09.2021 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.

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