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Daily Base Metals Report

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US stocks extended losses following below-forecast corporate earnings results. US inflation-adjusted consumer spending came in higher than expected, at 0.2% m/m in March, supporting the Fed’s next move to hike by 50bps. The 10yr US Treasury yield edged higher as a result; the dollar softened for the first time in 7 days. Elsewhere, euro-area inflation climbed record highs of 7.5% y/y in April, putting pressure on the ECB follow in Fed’s footsteps to being the hiking cycle.

Mixed performance among the base metal group, with the upside momentum driven in large by China’s pledge to ramp up support. Indeed, aluminium and copper gained moderate ground, as both metals closed marginally higher at $3,052.50/t and $9,769.50/t, respectively. Lead softened in the latter half of the day but still managed to close above yesterday’s close at $2,260.50/t. Nickel saw some robust losses during the day, falling below the support level of $32,000/t to $31,771/t, the lows not seen since end of March. At the same time, China stepped up its rhetorical support for Russia, highlighting the possibility of continued relationship between two nations.

Oil futures remained on front foot on the prospects of EU ban on Russian oil. Moreover, OPEC+ stated that it keeps its supply outlook intact despite the possibility of embargo. WTI and Brent are trading at $106.66/bl and $109.69/bl at the time of writing. Precious metals were mixed, with gold and silver diverging to $1,910/oz and 23.09/oz, respectively.

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

All price data is from 29.04.2022 as of 17:30


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