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Daily Base Metals Report

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US stocks fell once again, and bond yields hit a multiyear high following the Fed’s decision to hike rates by 75bps. The policymakers also stated that another 125bps is to be expected by the end of the year; the markets are now pricing 75bps in November and 50bps in December. As a result, the 30-year US mortgage rate jumped to 6.29%, the highest since October 2008. The dollar jumped to 111.81, and the 10yr US Treasury yield reached 3.71%; the 2yr Treasury yield was at 4.15%. Elsewhere, the BOE followed suit by hiking by 50bps. Meanwhile, Japan intervened to prop up the yen for the first time since 1998 after the central bank decided to stick to low interest rate; the yen rose by 2.5% against the dollar.
Risk sentiment improved today, with most metals seeing some upside momentum in the first half of the day.

Aluminium traded upwards throughout the day, as it traced back to $2,228.50/t. Lead and zinc closed higher at $1,851.50/t and $3,106.50/t, respectively. Copper gained footing in the first half of the day, but resistance at $7,750/t held on and the metal traded lower to $7,680/t. The downside momentum in the second half of the day intensified following Chile’s government statement to press on with measures to tackle the country’s water crisis after a draft constitution. Nickel opened lower on the day and continued to trace lower to $21,570/t.

Oil futures fluctuated today, with WTI and Brent remaining broadly unchanged at $83/bl and $90/bl. Gold and silver wavered following Japan’s intervention to support the currency; gold and silver trade at $1,671/oz and $19.53/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 (128)

All price data is from 22.09.2022 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.

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