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Daily Base Metals Report

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US stocks fell today on the reversal of the de-escalation talks progress between Ukraine and Russia. In Europe, we continue to see impacts of the crisis on the economy as already record-high inflation increases further, with prices in Spain growing by almost 10% in March, confirming the impact of the geopolitical tensions on the bloc. On the economic data front, the US has added 455,000 jobs in March, slightly down from 486,000 from the previous month, but still a robust level historically, another sign that the labour market remains robust. The dollar and the 10yr US Treasury yield both softened after yesterday's declines.

Base metals group reversed on the previous day's momentum, as risk-on sentiment returned to the market today. Aluminium gained ground, edging higher to breach resistance at $3,350/t, however, not enough to offset yesterday's losses, closing at $3,551/t. Copper gains were much more moderate after rebounding from the resistance of $10,500/t to settle into $10,367.50/t. To combat the impact of disruptions in the raw material market, the US is said to encourage domestic production of critical minerals for batteries, including those used in electric vehicles. Nickel and zinc both climbed, as a result, growing by more than 3% to close at $32,893/t and $4,149/t, respectively, at the time of writing.

Oil rebounded from a two-day decline as talks between Russia and Ukraine stalled, with WTI and Brent growing back to $107.69/bl and $113.83/bl. European gas futures surged to record highs, prompting some companies to halt trading for the day. Precious metals were all seen marginally higher.

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

All price data is from 30.03.2022 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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