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Daily Base Metals Report

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US stocks rose on the back of resilient economic data coming out today. US continuing jobless claims rose to 235,000 in the week ending July 2nd, highlighting a robust, albeit softening, labour market. The credit card continues to facilitate consumer spending in the US, as spending increased by 11% y/y in June vs 13% in April. US mortgage rates posted the biggest weekly decline since 2008, as they fell to 5.3% from 5.7% last week. The FOMC minutes pointed to continued resolve from the Fed to continue hiking if necessary; however, expectations of slower growth are prices in fewer rate hikes throughout the tightening cycle. In the UK, Boris Johnson quit as the leader of the party while claiming to remain in the PM seat until autumn.

Metals jumped today as the dollar declined for the first time in 5 days. The metals were given an additional boost after China’s Ministry of Finance is said to be considering the local government to sell 1.5tr yuan of special bonds in 2022 as means of supporting the infrastructure sector of the economy. Nickel swung between gains and losses, as resistance at $22,600/t brought the level back slightly lower day on day to close at $21,535/t. Copper shot up, bouncing off the recent lows of $7,500/t to $7,822.50/t. Tin saw the strongest gains, up by 5% to close at $25,984/t. Aluminium edged higher into $2,442.50/t. Lead and zinc followed as they closed higher at $1,971/t and $3,110/t, respectively. Iron ore futures traded above $110/mt and continued to trade higher today to $114.65/mt.

Oil futures bounced higher in the latter half of the day, gaining 5%, with WTI and Brent trading at $104/bl and $106/bl. Gold and silver edged higher to $1,740/oz and $19.26/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 07.07.2022 as of 17:30


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