EUROPEAN COMMODITIES UPDATE: Generally contained trade ahead of upcoming macro risk events

Analysis details (10:35)

• Crude benchmarks retain an underlying positive bias from the supportive APAC tone, with fresh developments and price action since limited amid a thin docket for the session. Currently, WTI and Brent have been back above USD 80/bbl and USD 85/bbl respectively at best, albeit the latter has slipped incrementally back below the figure; parameters which are well within the confines of last week’s action and keeps the space in proximity to the early-March peak.


• As mentioned, newsflow has been sparse both in terms of commodity specifics and broader macro developments with the scheduled limited aside from a handful of Central Bank speakers before the pace ramps up on Wednesday with US CPI and FOMC Minutes.


• Australia announced it will be suspending its WTO dispute against China regarding Barley, after coming to an agreement with the nation; subsequently, China’s Foreign Ministry said it is willing to work with Australia to return relations to the right track. A development which has added to the positive undertones between the nations since the mid-March removal of coal restrictions and as such has proven supportive for base metals; LME Copper back above USD 8850 after initial flat trade.


• Moving to precious metals, spot gold is firmer and holding just above the USD 2k/oz mark around USD 10/oz above the 10-DMA at USD 1991/oz. Action which, as above, occurs in limited newsflow and despite the somewhat constructive APAC handover and European tone as US futures remain tentative and the USD eases.

11 Apr 2023 - 10:35- MetalsData- Source: Newsquawk