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Daily Base Metals Report

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US stocks declined on Monday, led by tech firms, on concerns of high inflation longer-than-expected. The dollar fell for the third day in a row, and the 10yr US Treasury yield found support at 1.45%. The Chinese markets are closed until Friday for the Golden Week holidays. Nonfarm payrolls are out Friday and are expected to double relative to August figures.

Metals on the LME traded higher yesterday, apart from nickel, as the risk appetite in the markets continued from the previous week. Aluminium gained ground, testing the level at $2,929/t but closing below at $2,916/t. Copper increased in the second half of the day, closing just below the resistance level of $9,379/t at $9,250.50/t; cash to 3-month spread remained marginally unchanged at $7.00/t. Zinc briefly topped $3,040/t; however, resistance at that level triggered a close at $3,016/t. Lead prices remained unchanged on the day, closing at $2,148/t. Nickel was under pressure, closing below $18,000/t at $17,924/t.

Oil futures surged, with WTI reaching the 2014 highs of $77.86/bl after the OPEC+ decision to maintain a gradual supply hike despite the supply crunch crisis. Brent traded at $81.58/bl. Precious metals were mixed, with gold and silver edging higher to $1,767.32/oz and $22.68/oz, respectively.

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

All price data is from 04.10.2021 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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