Industrial metals (copper, aluminium, nickel, etc.) daily review (January 24, 2014)
January 24, 2014, Friday, 04:54 GMT | 00:54 EST | 10:24 IST | 12:54 SGT
Base metals on the LME traded on a negative note yesterday on the back of unfavorable manufacturing data from the US and China. Also, negative sales data from UK coupled with mixed global market sentiments acted as negative factors. Further, weakness in the DX along with positive economic data from Euro Zone could not cushion sharp negative movement.
In the Indian markets, Rupee depreciation could not restrict sharp downside in prices.
LME Copper slumped by more than 1 percent yesterday taking cues from negative manufacturing data from two biggest consumers, the US and China. Also, weak economic data from the UK along with mixed global market sentiments exerted downside pressure on prices. Further, weakness in the DX, decline in inventories coupled with positive manufacturing data from the Euro Zone could not restrict sharp downside in prices. The red metal touched an intra-day low of $7190/tonne and closed at $7216/tonne on Thursday.
MCX Copper prices traded lower by 0.9 percent despite Rupee depreciation touching an intra-day low of Rs.451.9/kg and closed at Rs.453.8/kg on Thursday.
We expect the base metals to trade mixed today on the back of negative manufacturing data from the US and China will act as a negative factor. Also, strength in the DX along with weak market sentiments will exert downside pressure in the prices. On the other hand, positive manufacturing data from Euro Zone, favorable home sales data from the US along with expectations of positive economic data from the UK will act as positive factors for the prices.
In the Indian markets, Rupee depreciation will cushion sharp downside or even reversal in the prices.