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Daily Base Metals Report

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The stock market bounced back after four consecutive days of decline on the back of commodity declines. The most recent optimism was fuelled by Ukraine's being open to discussing Russia's demand for neutrality, given that security guarantees are provided. The dollar tumbled, and the 10yr US Treasury yield strengthened to $1.92%. The Russian stock market is being kept closed in the meantime in order to avoid it from tumbling, so it is hard to gauge the extent to which businesses have suffered so far from sanctions. The ECB meeting is tomorrow, and we expect the crisis in Ukraine to shift the tone in policymakers' statements and further postpone the rate of the hikes.

The commodity market was on the forefront of news once again, as metals weakened across the board, despite news that industries in Europe are beginning to struggle to operate given the recent rally in energy prices. Tin saw the biggest drop of 9% on the day, as the metal fell to $44,260/t. Aluminium fell by 5% to test $3,320/t and it continued to edge lower to close at $3,341/t. Copper saw more moderate gains, as the metal fell to close at $10,001.50/t; cash to 3-month tightened into $20.00/t. Lead and zinc were on the back foot, closing at $2,405.50/t and $3,940/t, respectively. Nickel trading remains closed.

Oil futures weakened today, erasing the previous day's gains. WTI and Brent fell to $117.31/bl and $120.76/bl. Precious metals were also seen down on the day, with gold and silver falling to $2,001.76/oz and $25.99/oz, respectively.

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

All price data is from 09.03.2022 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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