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Daily Base Metals Report

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U.S. equities rallied towards another record as Joe Biden chose Jerome Powell for another term as head of the Fed. With parts of Europe threatening another lockdown amid rising COVID cases, we expect U.S. equities to continue to perform well. The dollar strengthened again and trades at 96.3, bond yields rallied, and trade at 1.597%. FOMC minutes this week, along with personal income and durable goods, will help to give more of an indication of the state of the U.S. economy. Yesterday's existing home sales were 6.34m and up 0.8% M/M, suggesting the housing market is still strong.

Sentiment on the LME was positive, following a quiet Chinese session where volumes were low. Liquidity remains low, but the physical tightness continues to dictate the market. Yesterday, zinc was the big mover after Glencore shut more capacity due to high energy costs, prices settled at $3,348.5/t. Copper closed at $9,726.5/t with cash to 3s at $109/t. Aluminium consolidated recent gains and closed at $2,689/t. Nickel continued to be well supported and closed at $20,336/t with the cash to 3-month settling at $158/t. 

Oil prices gained ground after the U.S., India, Japan, and South Korea have suggested releasing oil reserves into the market to cap prices; however, OPEC+ could respond with a change in strategy. Brent and WTI prices trade at $79.57/bl and $76.62/bl. Gold and silver prices suffered today, trading at $1,814.86/oz and $24.37/oz.

All price data is from 22.11.2021 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.

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