EUROPEAN COMMODITIES UPDATE: Crude pulls back, but base metals largely supported by Chinese Manufacturing PMI

Crude Oil: WTI May -0.3%/Brent Jun -0.3%

• A softer session thus far as the complex gives back some of yesterday's gains after settling higher yesterday on the back of punchy geopolitical comments from Trump over the weekend on Iran and Russia.


• Desks suggest that secondary sanctions on Iran and Russia would be counterproductive as it makes it difficult for Trump to deliver on his promise of lower oil prices.


• Onto today's session, newsflow has been quiet and contracts have been trimming yesterday's gains.


• Overnight, better-than-expected Chinese Caixin Manufacturing PMI failed to underpin prices into European trade. European Manufacturing PMIs were largely revised marginally lower.


• In geopolitics, Russia's Defence Ministry said Ukraine continues its attacks on Russia's energy infrastructure, via Interfax; Ukraine attacked Russia's energy infrastructure twice in the last 24hrs


• Ahead, today sees the ISM Manufacturing PMI release, but all focus is on ‘Liberation Day’ on Wednesday, before the US jobs report and Fed Chair Powell on Friday.


• WTI May resides in a USD 71.27-71.75/bbl range while Brent June sits in a current USD 74.58-75.02/bbl parameter.

Precious Metals: Gold +0.3%, Silver -0.2%, Palladium +0.7%

• Mixed trade across precious metals with spot gold continuing to hold near record highs, whilst spot silver is subdued and spot palladium coat-tails the gains across the Auto sector this morning.


• Aside from today's US ISM Manufacturing PMI, traders await details on the US trade policy ahead of "Liberation Day".


• US President Trump said we will see tariff details maybe Tuesday night or on Wednesday which are going to be nice in comparison to other countries and in some cases, they may be substantially lower.


• US President Trump is said to be still deciding which plan he will take for reciprocal tariffs and has been presented with "multiple" tariff plans, according to administration sources cited by FBN's Lawrence.


• US Treasury Secretary Bessent said President Trump will announce reciprocal tariffs at 15:00EDT/20:00BST on Wednesday.


• Spot gold currently resides in a USD 3,120.12-3,149.09/oz range after printing a fresh record high overnight. The first downside level is yesterday's trough at USD 3,076.80/oz.

Base Metals: 3M LME Copper +0.4%

• Mostly firmer trade across base metals, with the complex buoyed by the better-than-expected Chinese Caixin Manufacturing PMI data overnight which bodes well for the demand side of the equation.


• Aside from that, newsflow has been light in general as traders await the US ISM Manufacturing data today, but more importantly, details of Trump's tariff plans, with "Liberation Day" looming.


• 3M LME copper currently trades in a narrow USD 9,712.40-9,794.00/t range.

01 Apr 2025 - 10:20- ForexGeopolitical- Source: Newsquawk