LIVE FUTURES REPORT 02/03: LME nickel down over 7%; copper below $9,000/t

March 05, 2021 / www.metalbulletin.com / Article Link

The sell-off in the London Metal Exchange three-month nickel price continued on March 4, with the metal down to its lowest since November 2020 during early trading, with a higher US Dollar also dragging the rest of the complex down by an average of 2%.

The US Dollar was up to as much as 91.17 at 9am, from Wednesday's 5pm reading of 90.88, while the rise in yields of the US 10-year Treasury bonds to 1.5% and higher expectations of inflation have put base metal prices under pressure. 
The five-year break even inflation rate, a market indicator that measures the predicted rise in consumer prices over the next five years in use, hit 2.5% on Wednesday, bringing market expectations of inflation to their highest since 2008. 

While rising inflation usually boosts the value of commodities concurrent with denominating currencies losing value, the recent volatility spooked investors...

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