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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

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.

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