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

Daily Base Metals Report

Read disclaimer

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

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. This week’s focus is on USDCNH and the currency's trajectory as Chinese economies continues to show weakness despite stimulus attempts from the government and the PBOC.

FX Monthly Report August 2022

Monthly commentary covering the FX markets, providing insights on recent developments on select currency pairs. This month we look into the EUR and the pressure the ECB is under to continue tightening monetary policy as USD continues to strengthen against major currencies. Economic data is weakening and inflation remains a concern. 

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.