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Daily Base Metals Report

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US stocks declined after mixed economic data was released today. US jobs growth yielded the smallest gain this year, growing by less than half compared to the median estimate; however, the labour force participation continued to edge higher. Nevertheless, while it is unlikely to impact the Fed’s tapering plans, it should add volatility to the upcoming meetings assessing the speed of the reduction in bond purchases. US service industry rose to 69.1 in November, a record high, as consumer demand strengthened business activity. The dollar fluctuated, and the US Treasury curve continued to flatten, on the back of the belief that the Fed’s plans are to remain intact.

Metals prices continued to consolidate yesterday, trading remains quiet, but lead was the largest mover, falling below the support level of $2,220/t to close at $2,210.50/t. Aluminium recovered some of the previous day’s losses, closing marginally higher on the day at $2,623/t; cash to 3-month spread tightened into $15.25/t. Nickel tested the resistance of $20,400/t in the first half of the day before closing near the day’s lows at $20,030/t. Zinc was seen higher on the day, closing at $3,161.50/t. Copper weakened, closing above the support of $9,400/t at $9,418/t.

Oil futures rose amid weaker stocks and the dollar. WTI and Brent gained ground to $67.91/bl and $71.45/bl. Precious metals were mixed, as gold found footing around $1,770/t while silver declined to $22.35/oz.

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

All price data is from 01.12.2021 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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