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Daily Base Metals Report

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US stocks climbed higher today, on track to erase most of February losses, as the markets assessed economic resilience against the threat of energy crisis and, in turn, inflation. US initial jobless claims fell to 187,000 in the week ending March 19, the lowest level since 1969, as demand for labour increased, driven in large by the incentive of rising consumer prices. The dollar was range-bound, and the 10yr US Treasury yield softened to 2.34%. Given the recent increases in both the rates and upcoming rate expectations, mortgage rates in the US have breached 4.40% for 30-year loans, the highest level since January 2019.

Yesterday’s rally cooled on the LME, as metals softened marginally, despite another wave of sanctions against Russia announced by the US. Nickel, however, once again breached the day’s limit on the exchange to close higher at $37,235/t. Likewise, SHFE nickel futures jumped by 20%, causing the exchange to halt the metal’s trading for the day. Tin was another metal that gained ground today, edging higher to close at $42,726/t. Aluminium and copper softened marginally into closing at $3,623.50/t and $10,349.50/t, respectively. Lead softened, breaching support of $2,300/t to close at $2,308.50/t.

Oil futures paused their rally after major clearing houses announced increased margin costs, driving WTI and Brent lower to $113/bl and $120/bl. Silver gained ground into $25.62/oz, while gold remained broadly unchanged.

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

All price data is from 24.03.2022 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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