Industrial metals (copper, aluminium, nickel, etc.) daily review (January 29, 2014)
January 29, 2014, Wednesday, 05:36 GMT | 00:36 EST | 11:06 IST | 13:36 SGT
Base metals on the LME traded lower yesterday, taking cues from mixed data from the US. Also, strength in the DX coupled with mixed global markets sentiments acted as a negative factor. Also, concerns of QE taper by the Federal Reserve exerted downside pressure on prices.
However, positive consumer confidence data from the US along with favorable growth data from UK cushioned sharp downside in the base metals.
In the Indian markets, base metals traded lower owing to Rupee appreciation.
LME Copper prices fell by 0.1 percent yesterday on the back of negative durable goods data from the US. Also, mixed market sentiments coupled with strength in the DX on account of expectations of further QE taper exerted downside pressure on the metal.
However, favorable consumer confidence data from the US along with decline in inventories by 0.9 percent to 322,575 tonnes restricted sharp negative movement in prices. Also, positive GDP data from UK acted as a supportive factor. The red metal touched an intra-day low of $7135/tonne and closed at $7148/tonne on Tuesday.
MCX Copper prices slumped by 1.4 percent yesterday taking cues from Rupee appreciation. During yesterday’s trade, the red metal touched an intra-day low of Rs.452.5/kg and closed at Rs.453/kg.
We expect base metals to trade on a mixed note today on the back of expectation of positive economic data from the Euro Zone. While on the other hand, negative data from UK will exert downside pressure on prices. Also, investors remain cautious ahead of the Federal Reserve meeting.
In the Indian markets, Rupee appreciation will exert downside pressure or cap sharp upside in prices.