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Daily Base Metals Report

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European equities sold off as uncertainty surrounding the next rate hikes in the U.K.; in the U.S., markets have traded so far after Fed Chair Jerome Powell indicated that the Fed could avoid a hard landing, but it is getting harder. Christine Lagarde, Jerome Powell, and Andrew Bailey all spoke today and highlighted their concern about inflation. The dollar was firmer today into month and quarter-end, as sterling and the Euro weakened. Economic growth is slowing, and higher rates will certainly impact borrowing costs and hinder the economy more. U.S. yields continued to fall with the 10yr around 3.10%, but we expect yields to push higher in the coming months. 

LME prices were mixed today; Nickel rallied following news that Vladimir Potanin was sanctioned; however, Nornickel are not, but Potanin owns 36.% of the company. Nickel retreated from the highs of $25,295/t back towards $23,800/t. Zinc edged higher to test resistance at $3,400/t but closed at $3,360/t. Lead was weaker and closed at $1,932.5/t. The tin spread settled at $351/t back with the 3-month at $26,774/t. Aluminium came under more pressure as China produced a record 3.42m tonnes in May as cheaper energy from Russia reduces costs. Copper edged higher to close at $8,401/t with the spread at $-1.75/t. 

Energy prices failed to hold onto the highs, with brent and WTI trading at $118.16/bl and $112/bl at the time of writing. Gold and silver were unchanged, trading at $1,818.84/oz and $20.78/oz, 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 29.06.2022 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.

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