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Daily Base Metals Report

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US stocks continued to pare gains, driven in large by tech firms, as corporate earnings results for these firms were released today. US 10yr Treasury yield settled at 3.00%, as investors sought after the bond markets following the risk of halted gas shipments from Russia to the EU. The bloc proposed that they cut gas consumption by 15% over the next eight months to help the economy transition away from Russian exports, if the shutoff materialises. This comes a day before the ECB begins to hike rates for the first time in more than a decade. Euro-area consumer confidence dropped to a record low in June amid record inflation and a looming energy crisis. In the UK, inflation hit a 40-year high in June, up by 9.4% y/y, urging the BoE to deliver on interest rate hikes next month. Meanwhile, US existing home sales dropped for the fifth consecutive month, down by 5.4% m/m in June, as borrowing costs continue to erode availability.

Moderate upside momentum seen on the LME exchange today, only with tin to close lower at $24,691/t. Nickel saw the strongest gains, opening higher at $21,000/t and continuing to trace marginally higher during the day to close at $21,179/t. Lead followed suit, after initially declining in the first half of the day to gain strength to close at $2,032.50/t. Zinc also closed higher at $3,006.50/t. Aluminium jumped higher, but resistance at $2,460/t meant that the metal edged below to $2,430/t. Copper fluctuated to settle at $7,378/t. Chinese banks held their lending rates unchanged today as they aim to navigate supporting economic growth and a tighter monetary policy environment elsewhere. The 1-year loan prime rate remained unchanged at 3.7%.

Oil futures edged lower today in tandem with a rebound in a broader market; WTI and Brent now trade at $103/bl and $106/bl. In the meantime, Saudi Arabia stated that the output is near its limit, suggesting that the biggest producer might have less capacity than originally anticipated. Gold and silver steadied at $1,706/oz and $18.85/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 20.07.2022 as of 17:30


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