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

Daily Base Metals Report

Read disclaimer
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 

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.

Daily Report Softs Technical Charts

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

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 USDCNH and the currency's trajectory as Chinese economies continues to show weakness despite stimulus attempts from the government and the PBOC.

FX Monthly Report August 2022

Monthly commentary covering the FX markets, providing insights on recent developments on select currency pairs. This month we look into the EUR and the pressure the ECB is under to continue tightening monetary policy as USD continues to strengthen against major currencies. Economic data is weakening and inflation remains a concern. 

Quarterly Metals Report – Q3 2022

Our analysts provide an in-depth analysis of the metals market and current macroeconomic conditions. The environment has weakened significantly as growth fears rise amid persistent high inflation. Central banks are data-dependent, which could mean they slow rate hikes as growth starts to slow. This has meant a downside to the US 10yr yield, but also we see a downside to rate hikes in Q4. Europe will likely enter a recession before the US and take longer to recover, but material availability is significantly lower, shown by low inventories.