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

Daily Base Metals Report

Read disclaimer

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

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. 

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.