1. Reports
  2. Daily Base Metals Report
Non-independent Research

Daily Base Metals Report

Read disclaimer

US stocks declined today as investors turned their attention to the general trend of monetary policy tightening this year. According to NY Fed President Williams, raising interest rates by half-percentage point is a reasonable option. US Mortgage rates hit 5% for the first time since 2011, as they track the performance of 10yr US Treasuries, adding further pressures on potential homebuyers. US consumer confidence shot up to a 3-month high, beating expectations after a rebound in labour market conditions and rising wages offset the growing inflationary pressures. Additionally, US retail sales picked up in March, up by 0.5% m/m, supported by rising gas station receipts. The dollar rallied in the latter half of the day, and the 10yr US Treasury yield tested resistance at 2.80%. Meanwhile, the euro slipped to the lowest level vs the dollar since May 2020 after the ECB stated that the war in Ukraine increased the prospects of further inflation acceleration; the policymakers also stated that the next meeting in June would provide clearer signals on monetary policy pullback.

Another mixed day of the performance on the LME, with gains driven in large by PBoC’s statement to use the policy toolbox flexibly to ensure liquidity while also confirming the use of RRR at the appropriate time. Metals like aluminium and nickel increased to close at $3,285.50/t and $33,175/t, respectively. Copper was more range-bound, closing at $10,315/t. Lead and zinc closed at $2,435/t and $4,412/t, respectively.

Oil futures edged lower on the day, with WTI and Brent trading at $104.08/bl and $108.64/bl. Precious metals were also seen lower, with gold and silver softening into $1,969.15/oz and $25.44/o, respectively.

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

All price data is from 14.04.2022 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.

Sign-up to get the latest Non-independent research

We will email you each time a new report has been published.

You might also be interested in...

Daily Report FX

A morning report covering fundamentals and technicals for USD, EUR, GBP, JPY, and CHF.

Weekly Report FX Options

Our FX Options Report contains commentary and analysis covering OTC currency option pricing, volatility and positioning. This week’s focus is on EURPLN and the currency trajectory following the deteriorating economic outlook in Europe and rising rates in Poland.

Daily Report Softs Technical Charts

Technical analysis and charts for the key sugar, cocoa and coffee contracts.

FX Monthly Report May 2022

Monthly commentary covering the FX markets, providing insights on recent developments on select currency pairs. This month we look at the current inflation outlook across LATAM, Europe, U.S. and U.K. and gauge if central banks will slow their rate hikes. Economic data is weakening and China's poor growth and woeful demand could impact policy makers decisions. 

Quarterly Metals Report – Q1 2022

Our analysts provide in-depth analysis into the current macroeconomic conditions and how near-term choppiness may subside in the coming months, once the Fed has confirmed its stance on Monetary Policy. The backwardated spreads in the metals market outline the tightness, and the geopolitical tensions between Russia and Ukraine could compound tightness in Europe due to lower energy, metals, and grain exports.