1. Reports
  2. Daily Base Metals Report

US stocks reversed the bear trend today, with S&P 500 edging slightly higher after five days of consecutive declines. The sentiment improved slightly after the markets assessed the economic data pointing out that the overall state of the economy, whilst decelerating, is not on the brink of recession. US consumer confidence rose for the second straight month in September, as falling energy prices eased consumers’ worries about their disposable income. US business equipment orders rose in August by the most since the start of the year. Likewise, US new home sales rose unexpectedly in August, highlighting another wave of buying ahead of another round of tightening cycle from the central bank. The dollar softened for the first time in two days while the US 10yr Treasury yield continued higher, testing the 4.00% level. Elsewhere, the pound settled at yesterday’s close at 1.07.

From the metals prospectively, dollar softness provided some metals with support today; across the complex, the trading was mixed. Nickel spreads fell to the deepest discount since 2008 as strong dollar and higher borrowing costs made it more expensive for banks to finance their positions in recent days. This is especially true for institutions in Europe where the financing is done in euros for dollar-based deals. Nickel continued to decline, edging slightly lower to $21,858/t. Likewise, aluminium struggled above the resistance level at $2,150/t, deepening its lows into the levels not seen since February 2021. Zinc closed lower at $2,861.50/t. Lead, however, managed to find support at $1,750/t but a lack of appetite above current levels meant that the metal closed at $1,748.50/t.

Meanwhile, Germany suspects that the damage done to the Nord Stream pipeline was a result of sabotage, creating further tightness in the market. As a result, EU gas prices jumped 12%. Oil futures also rose, with WTI and Brent jumping to $78/bl and $86/bl. Precious metals recovered some of yesterday’s losses, and gold and silver now trade at $1,636/oz and $18.63/oz, respectively.

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

Lme Metals Price And Volume 27092022

All price data is from 27.09.2022 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.