EUROPEAN COMMODITIES UPDATE: Contained trade, in-fitting with broader action, pre-NFP

Analysis details (10:25)

• In limited newsflow and with the commodity-specific docket sparse, trade has been very contained thus far as broader markets await the US NFP report and subsequent Fed speak for any further clues into a potential pivot.


• As it stands, WTI and Brent are off highs but still holding onto gains of around USD 0.50/bbl and are at the top-end of the week’s USD 86.35/bbl – 95.00/bbl parameter in Brent Dec’22, for instance. A week that has been dominated by the OPEC+ event and the resulting production cuts which have sparked a number of desks to call for Brent to breach USD 100/bbl in the near-term. For today, the main potential catalyst is the EU’s informal meeting of heads of state. A gathering which is focused on “Russia's war in Ukraine, energy and the economic situation.”, from this we are not expecting a breakthrough as such on the energy situation, but a potential (currently TBC) statement from the Commission and Council President’s will be scoured, nonetheless.


• Moving to metals, spot gold is little changed overall having derived some very brief upside from the DXY’s move below 112.00; though, as the index is yet to connivingly move below the figure, the yellow metal has struggled to once again approach the 50-DMA at USD 1721/oz. For reference, the 100- and 200-DMAs reside some way off at 1759 and 1822 respectively. Elsewhere, Reuters reports citing sources that the Japanese aluminium premium for October-December shipment has been set at USD 99/T, -33% QQ.

07 Oct 2022 - 10:25- MetalsEU Research- Source: Newsquawk