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Daily Base Metals Report

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European equities declined as PMI data came in under expectations but was still expansionary; the same could be said for U.S. PMIs, which slumped on the month to 52.4, down from 57. U.S. yields declined back to 3% and trades at 3.044% at the time of writing. German bonds rallied as well as other European bonds. The USD came under pressure from the JPY and CHF today, but the index consolidated after Jerome Powell once again said his commitment to fighting inflation was unconditional. The pullback in yields could give equities some marginal upside in the near term. 
LME prices came under heavy selling, with tin once again taking the largest hit in percentage terms and closing at $26,985/t. However, the cash to 3s tightened. Copper failed above $8,751/t and broke through key support at $8,500/t to close at $8,409/t; SHFE copper was also down nearly 3%. Lead and zinc closed below key support levels to close at $1,947.5/t and $3,491.50/t, respectively; however, the zinc cash to 3-month spread tightened to $218/t back. Aluminium consolidated and closed at $2,477.5/t. The selling pressure came as economic slowdown fears continued, and stops were triggered while systems sold at critical levels. 
This afternoon, energy prices failed to hold onto gains and broke below key support, with WTI and Brent trading at $104.37/bl and $110.26/bl, respectively. 

For more in-depth analysis of base and precious metals, our Q2 2022 Quarterly Metals report is out now!

All price data is from 23.06.2022 as of 17:30 


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