EUROPEAN COMMODITIES UPDATE: Crude wanes off highs while base metals give up mild APAC gains

Analysis details (10:00)

• 
  WTI and Brent August contracts have given up the mild gains seen in early European hours, following a choppy session yesterday in which both contracts settled modestly higher yesterday. Prices were firmer overnight as the demand side of the equation was buoyed by commentary from Chinese Premier Li at the World Economic Forum in Tianjin, whereby he said China is expected to achieve its economic growth target of around 5% for 2023. Thereafter, crude prices were firmer heading into the European equity open, but then faded alongside stocks, with ECB’s Sintra forum underway and hawkish vibes emanating from ECB’s Kazaks throughout the morning. Aside from that, complex-specific newsflow has been light as traders look ahead to more Sintra speakers alongside the weekly Private Inventories after the US cash close. Desks suggest China’s recovery remains one of the largest influences over prices.


• Over to metals, spot gold has been constrained to a tight range between USD 1,921-30/oz amidst a light European data calendar but a busy speakers slate. Base metals are now flat/firmer after giving up most of their mild APAC gains which emanated from the aforementioned economic commentary from Chinese Premier Li, with prices recently hit amid a turn in the risk sentiment. 3M LME copper has dipped back under USD 8,400/t from intraday highs of around USD 8,474/t. It's also worth noting Singapore iron ore rose over 4% overnight on the back of the Chinese commentary.

27 Jun 2023 - 10:04- Research Sheet- Source: Newsquawk