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Daily Base Metals Report

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US stocks fluctuated on Friday on the back of mixed economic data. US payrolls came at 194,000 in September, less than half of what was forecasted and the smallest advancement of 2021. The unemployment rate continued to fall, down to 4.8%. However, it is believed by the markets that this report will not deter from enacting the bond purchases tapering in November. The dollar weakened, and the 10yr US Treasury yield continued to pare gains to 1.6048%, the June highs.

Metals on the LME extended their advance yesterday amid a weaker dollar; most of the rally has taken place in the first hours of the day, as Chinese markets have reopened after a week of national holidays. Nickel posted the biggest daily gain, up 5.02%, and closing at $19,221/t. Zinc prices were firmer, breaking above $9,300/t to close at $3,151/t; cash to 3-month spread tightened to -$6.50/t. Aluminium prices tested the $2,989/t resistance level and closed at $2,966/t. Copper was also on the front foot, trading to $9,390/t and closing at the day’s high at $9,361/t. Lead prices firmed in the second half of the day, testing $2,230/t to close at $2,221/t. Iron ore prices were up on the day, closing at $127.30/mt.

Oil futures surged to November 2014 highs as energy crisis worries spiked once again. WTI topped $80/bl, while Brent traded around $82.87/bl. Precious metals were higher, with gold and silver only marginally higher on the day, up to $1,758.60/oz and $22.75/oz, respectively.

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

All price data is from 08.10.2021 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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