EUROPEAN COMMODITY UPDATE: Two-way, but ultimately contained pre-NFP price action
Analysis details (10:40)
- Crude benchmarks are firmer, but have been subject to two-way price action throughout the morning which has been directionally in-fitting with but slightly more pronounced than equity action. Currently, WTI Feb’23 and Brent Mar’23 are posting gains just shy of 1.0% as the upside stalled a touch around USD 0.30/bbl shy of the USD 75/bbl and USD 80/bbl handles respectively. As such, the benchmarks remain well-within WTD parameters and are over USD 6/bbl from Tuesday’s peak.
- Newsflow explicitly for the complex has been fairly limited with participants focusing on the looming US NFP print (newsquawk preview available). In terms of the developments, Russia confirmed that the ceasefire has come into effect in Ukraine for the Christmas period (in-fitting with the Julian calendar), though it remains to be seen if Ukraine will also observe this given Zelensky’s spokesperson yesterday saying a ceasefire can only be discussed when Russia pulls out of all occupied territory. Elsewhere, but sticking with geopolitics, the Turkish Defence Minister says Greece is carrying out acts of incitement against us, and we did not get a positive response from them regarding the establishment of a dialogue, according to AJ Breaking.
- Moving to metals, spot gold is modestly firmer though is yet to recoup all of the marked downside seen in yesterday’s session, which saw the yellow metal surrender the USD 1850/oz handle after recently reclaiming it for the first time since June 2022. Pressure which brings the 10-DMA at USD 1824/oz into play, though the current USD 1830/oz low is comfortably above the mark for now. Base metals are broadly speaking in-fitting with this tentative pre-NFP tone, with LME Copper essentially unchanged on the session.
06 Jan 2023 - 10:35- MetalsResearch Sheet- Source: Newsquawk
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