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Daily Base Metals Report

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US stocks gained ground yesterday as the markets assessed the consequences of high inflation for the third day straight. US consumer sentiment continued to deteriorate, falling to 10yr lows of 66.8 in November, as their expectations of inflationary pressures in the next year continue to mount. The dollar fell after the US warned Europe over the potential military conflict between Russia and Ukraine. The 10yr US Treasury yield remained broadly unchanged.

LME and SHFE markets consolidated gains yesterday; sentiment is steady as prices end the week on the high. Aluminium, in particular, is stronger, gaining ground to test the level at $2,714/t and closed lower at $2,700/t. Copper gained ground in the second half of the day, testing the resistance level of $9,739/t closer to the end of the trading day, the metal closed at $9,711/t. Nickel was seen marginally higher, closing at $19,979/t; cash to 3-month spread tightened up to $155/t. Tin and zinc both were seen down on the day, at $37,845/t and $3,267/t, respectively.

Oil futures eased, closing yet another week on the back foot; WTI and Brent traded at $80.92/bl and $82.39/bl. Precious metals were marginally unchanged, with gold and silver falling down to $1,861.81/oz and $25.22/oz, respectively.

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

LME closing prices and volume

All price data is from 12.11.2021 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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