EUROPEAN COMMODITIES UPDATE: Industrials march higher while precious metals await the US jobs report

Analysis details (10:17)

• WTI Jan and Brent Feb futures are posting notable gains in excess of USD 1.50/bbl apiece after settling relatively flat/modestly softer on Thursday in what was a choppy session with a lack of pertinent catalysts, although prices continued grinding higher post-settlement. Geopolitics remains in focus with reports this morning confirming Israel fired rockets into Syria, whilst the US embassy in Iraq was also reportedly targeted. Elsewhere, Russia’s Kremlin, when asked about the idea the US wants Russia to engage in peace talks with Ukraine on Kyiv's terms in 2024, said it is "absolutely unrealistic". The Kremlin also noted that President Putin and Iranian President Raisi discussed integration and cooperation within OPEC+ on Thursday. Over in China, the nation’s Politburo held a meeting and said it will continue to implement a proactive fiscal policy in 2024, and prudent monetary policy. Aside from that, complex-specific newsflow has been on the quieter side as traders await a macro impulse from the US jobs report later. WTI briefly rose above USD 71/bbl mark (vs low 69.50/bbl) while Brent briefly topped USD 76/bbl (vs low 74.20/bbl).


• Metals are mixed with precious metals flat pre-NFP around the USD 2,030/oz level and within yesterday’s USD 2,020-39.69/oz parameter. Spot silver remains sub-USD 24/oz and under its 21 DMA (USD 23.83/oz). Base metals are firmer across the board with desks citing improving demand from China following the recent PMI and trade data. 3M LME copper trades with gains of over 1% at the time of writing. Iron ore futures overnight moved in a similar vein with Dalian futures closing with gains of almost 2.5% following robust export data, coupled with speculation of more economic stimulus. Elsewhere, it was also reported that the EU is said to be considering restarting the WTO case against the US over steel tariffs, according to Bloomberg sources. The EU is not planning to immediately reimpose retaliatory tariffs on US goods - this move would keep options open for the EU while trying to prevent the return of duties that could affect exports.

08 Dec 2023 - 10:17- Research Sheet- Source: Newsquawk