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Daily Base Metals Report

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US and European stocks edged higher today as the market continued to assess the implications of higher inflation rates on the monetary policy outlook for both the Fed and the ECB. The dollar was seen marginally higher. The Chinese markets rallied today as aggregate financing fell down to CNY1.59tr in October, a sign of stabilising the credit market, and in turn, the construction sector. Chinese equities rallied after the state media pointed to support measures to be introduced to help developers access debt markets. The UK grew by 1.3% q/q in Q3, below the 1.5% BoE forecast, with weaker spending driving the softening in economic growth. Meanwhile, UK house prices continued to climb in October, as a lack of new properties coupled with strong buyer demand created tight market conditions.

Metals on the LME market strengthened yesterday, driven in part by softer system financing data coming from China. Aluminium rallied during the day and closed below the resistance level of $2,678/t at $2,660/t. Copper fluctuated but buying pressures prevailed, and the metal closed above the resistance of $9,600/t at $9,633.50/t; cash to 3-month spread tightened into $177/t. Lead found strength in the second half of the day but struggled above the $2,370/t level and closed at $2,366/t. Nickel was range-bound, closing at $19,759/t. Zinc was the only one that closed lower on the day at $3,279/t.

Oil fluctuated after Biden faced pressure to tap into reserves to help control rising prices. WTI and Brent traded at $81.57/bl and $82.75/bl. Gold topped $1,850/t, a 5-month high, while silver traded above $25.00/oz. European natural gas sold off after Russia gradually increased supply into the bloc.

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

LME closing prices and volumes

All price data is from 11.11.2021 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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