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Daily Base Metals Report

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US stocks weakened once again on Friday, as continued tensions between Russia and Ukraine drove market sentiment this development. Existing home sales in the US increased to a 1-year high, beating forecasts, as buyers rushed to secure homes before further increases in mortgage rates. The dollar rallied in the second half of the day, and the 10yr US Treasury yield softened. In the UK, retail sales rebounded in January, growing by 1.9%, after a 4% plunge in December when omicron cases reached their peak.

Another day of mixed market performance coming from the LME today, as tensions run high between Ukraine and Russia. The momentum continued from yesterday, with nickel rising further to the highest levels since mid-Jan of $24,200/t to close lower at $24,144/t; cash to 3-month spread tightened even further into $368/t. Copper pierced $10,000/t but struggled above that level to close at $9,956/t. Both zinc and lead reversed some of the previous day gains to close at $3,575.50/t and $2,348.50/t, respectively. Iron ore futures weakness cooled today, with prices finding support at $130/t.

Oil futures closed the week on the back foot for the first time in two months, with WTI and Brent at $91.10/bl and $92.71/bl. Precious metals were mixed; gold and silver traded at $1,896.15/oz and $23.93/oz, respectively.

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

All price data is from 18.02.2022 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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