Daily metals

What's Moving Markets?·      Global stocks ended near the highs, as investors interpreted soft jobs data and subdued inflation as signs that the Fed may cut interest rates this week. Traders are largely pricing in a 25bp rate cut at the Fed’s 17 Sep meeting, with a small chance of a larger half-point reduction given the current economic data. Base metals gained amid easing monetary policy and rising supply side issues. Gold advanced as economic worries boosted investor demand. Energy markets fell amid concerns of a weakening outlook and concerns of rising inventories. Yields on 10- year US Treasuries fell last week by 1bp to 4.07%, while the USD index was 0.2% weaker at 97.6.Anglo American has agreed to combine with Canada’s Teck Resources, creating a $50bn copper-mining giant as the global battle to secure critical minerals fuels consolidation across the industry. This potential merger would position Anglo Teck group in the top five global copper producers.Monetary policy decisions will be the focus this week as monetary authorities face uncertainty on growth, debt, and trade flows. The Fed will headline policy decisions and update its Summary of Economic Projections. Meanwhile, officials from the US and China will meet to continue discussing trade relations. On the data front, US retail sales and industrial production will update investors' view on consumer strength and how industries reacted to tariffs. Lastly, China's monthly data dump will offer a updates on Asia's largest economy.Precious metals ended broadly stable, with gold remaining close to record highs, as investors weighed a wave of US economic data that continue to support expectations for rate cuts. Gold extended gains in early trading in response to growing anxiety about the economic backdrop. Spot gold traded as high as $3,639/oz, on expectations of Fed rate cuts this year rose. The outlook remains bullish in the short term. Risks to the US labour market, headwinds for economic growth and rising geopolitical tensions are likely to keep investor appetite elevated. Palladium outpaced platinum. Russian drones were shot down in NATO-member Poland, driving the EU to threaten more sanctions against Russia, which supplies nearly half of global palladium.Base metals secured gains as copper consolidated its gains above the $10,000 level. Supply side issues also provided some support. The Grasberg copper mine in Indonesia remains shut as Freeport tries to rescue workers who have been become trapped underground. A prolonged disruption at the second largest copper mine in the world could tighten the market. Tin is continuing to outperform the rest of the base metals complex. LME net fund positioning has returned to record long levels, providing significant price support. According to the ILZSG, the global market for refined zinc metal was in surplus by 47kt over H125. World refined lead metal supply exceeded demand by 21kt in H125.Iron ore fell as steel prices tempered earlier optimism over demand in the Sep peak season. Steel rebar prices fell more than 2% and are sitting at a two-month low in reaction to concerns over weak demand for finished steel products.