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

Daily Base Metals Report

Read disclaimer

US stocks rose on the back of upbeat corporate earnings results today, reducing the expectations of a 100bps hike this month. US long-term inflation expectations weakened recently, with the University of Michigan's 5-year price forecast at 2.8%, as a recent drop in gas prices helped the sentiment. In the meantime, homebuilders’ sentiment continues to decline as it dropped to the lowest level since May 2020, on the back of compounded factors of inflation and increasing mortgage rates deterring consumer demand. The dollar softened, and the 10yr US Treasury yield advanced back to 3.00% as investors pulled back from safe-haven assets. Elsewhere, China’s central bank injected additional liquidity into the financial system for the first time since June as a growing mortgage boycott, and a growing number of covid cases are adding to the sense of crisis; the daily short-term cash operations have been boosted to 12bn yuan.

Metals have extended their recovery today following last week’s slump. Copper opened higher than Friday’s close and continued to gain footing to edge back above $7,400/t to close at $7,426.50/t. Aluminium followed suit, as the metal found support at $2,370/t before jumping back up to $2,426.50/t, reversing last week’s losses. Nickel breached resistance of $20,500/t as the metal closed at $20,652/t. Lead and zinc closed higher at $1,998.50/t and $3,006/t, respectively.

Oil futures jumped back above $100/bl after Saudi Arabia failed to make any promises in regards to future output outlook. In the meantime, Gazprom declared a force majeure on gas supplies to Europe to at least three major customers, aggravating the fears that Russia would reduce exports to most of Europe. Gold and silver performance diverged as the metals traded at $1,710/oz and $18.88/oz, respectively.

All price data is from 18.07.2022 as of 17:30


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. 

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.

FX Monthly Report June 2022

Monthly commentary covering the FX markets, providing insights on recent developments on select currency pairs. This month we look into the JPY and the pressure the BOJ is under to change their monetary policy as JPY continues to weaken against major currencies. Economic data is weakening and inflation is less of a problem in Japan, but yields continue to test the cap.