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Daily Base Metals Report

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US stocks fluctuated, as the markets found strength in the latter half of the day, following encouraging economic data. US initial jobless claims fell to the lowest level of 199,000 in more than 50 years, given a larger-than-expected drop week-on-week; the next reading will be key to understanding whether this figure is sustainable over the longer term. US personal spending rose by 1.3% m/m in October, and the PCE measure grew by 5% y/y in the same period. Meanwhile, orders for capital goods rose by more than forecast in October. Both indices point to continued strong demand for goods, despite continued mounting price pressures. The dollar continued to climb piercing resistance of 96.50, whilst the yield curve flattened as short-term maturities continued to strengthen.

Metal prices were mostly stronger today on positive economic data coming from the US. Nickel, in particular, tested one-month highs of $21,240/t before closing lower at $20,846/t. Tin jumped above $40,000/t after the Indonesian president alluded to the prospects of an export ban to attract investment into the industry; however, the lack of appetite above this level caused the metal to close at $39,960/t. Aluminium edged higher, testing the resistance of $2,710/t once again, closing just below this level at $2,704/t. Zinc and lead were mostly range-bound, closing at $3,322/t and $2,263.50/t, respectively.

Oil futures steadied following yesterday’s news of higher access to supply through reserves, with WTI and Brent trading at $78.28/bl and $82.17/bl. Gold and silver were also softer, at $1,788.94/oz and $23.51/oz, respectively.

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

All price data is from 24.11.2021 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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