US stocks started the week with modest gains as markets await the commentary from the central bank; broad geopolitics continues to drive the base-case sentiment. The Fed minutes are out this Wednesday, and policymakers are set to address the recent yield inversion and a growing sentiment of an upcoming recession. The dollar and the 10yr US Treasury yield were both on the front foot.
LME base metal prices fluctuated today amid investors weighing on the threats of further sanctions against Russia, with the EU set to discuss the demands surrounding oil and coal. Copper found strength in the latter half of the day, as a result, breaking above the resistance of $10,450/t to close at $10,469/t. Nickel was mostly range-bound, closing at $10,469/t; cash to 3-month however jumped higher into $109/t. Likewise, aluminium was marginally lower at $3,447/t. Zinc headed for a strong start in the first half of the day, testing resistance at $4,435/t, December 2006 high, excluding the recent spike a month ago, before reversing most of the gains to close slightly higher on the day at $4,369/t. At the same time, on-warrant zinc inventories fell more than 17% over the weekend, hitting the lowest level since May 2020.
Oil futures gained ground on the back of growing threats of sanctions against Russia, with WTI and Brent jumping higher to $102.05/bl and $106.70/bl. Precious metals fluctuated.
For more in-depth analysis of base and precious metals, please see our Quarterly Metals report.
All price data is from 04.04.2022 as of 17:30