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Daily Base Metals Report

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US stocks posted mild gains today, as they rebounded slightly from the 2-month lows. The 2yr Treasury yield continued to trade around the 4% level as investors await the Federal Reserve decision, which matched market expectations at 75bps point hike, as well the policymakers economic projections that should help guide market expectations for the remainder of this year and start of 2023. The dollar climbed to 111 alongside other safe-haven others on the Russian President’s decision to “partially mobilise” the reservist in the country. The euro on the other hand continued to weaken falling back below parity as a result. Meanwhile, previously-owned home sales in the US continued to fall for the seventh month straight as rising mortgage rates erode consumer demand and tight inventory diminishes the availability of houses on sale.#

The risk sentiment deteriorated in the metal space today, only with nickel edging higher on the back of the news from Russia; the metal closed at $21,170/t. Aluminium continued to decline for the fourth straight day, testing March 2021 lows of $2,198/t as market see little upside conviction in the market to $2,202.50/t. Copper followed suit, falling slightly below $7,700/t; the $7,500/t level remains intact and the market closed at $7,690/t. Lead and zinc both closed lower at $1,837/t and $3,098.50/t, respectively. China’s central bank has signalled that its interest rates are reasonable and provide more room for policy action, adding to market expectations that the policymakers might reduce rates once again. This further highlights the weakening

Chinese economy given the lockdown restriction still in place, dampening the global demand outlook.
Oil futures declined once again ahead of the Fed meeting, overshadowing the news from Russia that could threaten the energy supply from the region. WTI and Brent now trade at $83/bl and $90/bl. Gold and silver, on the other hand, gained momentum to $1,668/oz and $19.47/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 (127)

All price data is from 21.09.2022 as of 17:30


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