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Daily Base Metals Report

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US stocks softened yesterday as the bond market softened. The dollar rose, and the US Treasury yields pushed higher, as a continued repose to the Fed’s statement last week; the 10yr yield surged to 1.47%, reflecting the market’s expectations of tighter monetary policy and a continued surge of inflation. US small business owners confidence shot up to pre-pandemic levels, supported by the uptake of vaccinations and a decline in COVID-19 cases. US manufacturers orders for business equipment strengthened in August, as bookings for all durable goods rose by 1.8% m/m.

LME prices tumbled yesterday due to risk-off sentiment and a stronger dollar. Protracted selling pressure saw tin test support at $35,000/t but settled at $35,100/t. Nickel was next in line, down over 2.2% and broke through support at $19,000/t to close at $18,946/t. The nickel cash to 3-month spread remained in backwardation and settled at $13.50/t. Aluminium failed above $2,940/t and closed at $2,883.50/t. Zinc was also muted and closed at $3,067.50/t after testing appetite at $3,120/t. Copper was the only one higher on the day, closing at $9,362/t.

Oil futures strengthened on continued expectations of a tightening market following the global supply crunch. WTI and Brent increased to $75.33/bl and $79.55/bl. Precious metals were mostly higher, with gold and silver edging up to $1,753.55/oz and $22.71/oz.

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

All price data is from 27.09.2021 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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