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Daily Base Metals Report

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US stocks climbed following the US CPI data yesterday that pointed out softening inflationary pressures month-on-month. However, the Federal Reserve said that this does not warrant the halt of further interest rate hikes, and some policymakers see interest rates reaching as high as 3.9% by the end of this year. Swaps point to forecasts of a 50bps hike by the Fed in September. US PPI followed the trend after the price fell by 0.5% m/m unexpectedly in July, for the first time in two years, a reflection of softer energy costs. From the labour market, US initial jobless claims rose for the second week straight, holding the highest level since November, which could be a sign of potential softening in employment figures. The dollar dropped for the fourth straight day, and the 10yr US Treasury yield settled at 2.83%.

Metals on the LME led the upside momentum today as markets responded to yesterday’s CPI data. Copper jumped higher on the open, up to $8,160/t before trading slightly higher to close at $8,173/t. Likewise, nickel gained more than 6% up to $23,659/t. Aluminium gained footing, but resistance at $2,522/t capped the metal to come down to $2,520.50/t. Lead and zinc closed at $2,199/t and $3,686.50/t, respectively.

Oil futures advanced after IEA increased its demand forecast for global growth in 2022, lifting its consumption number by 380,000 bl/d. WTI and Brent traded at $93/bl and $98/bl. Gold wavered following the softness in the dollar, trading $1,791/oz; silver was at $20.38/oz.

For more in-depth analysis of base and precious metals, our Q3 2022 Quarterly Metals report is out now!

All price data is from 11.08.2022 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.

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