New York: 10:56 || London: 15:56 || Mumbai: 21:26 || Singapore: 23:56

Commodities Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (January 30, 2014)

January 30, 2014, Thursday, 05:58 GMT | 00:58 EST | 11:28 IST | 13:58 SGT
Contributed by Angel Broking


Base Metals
 
Base metals on the LME traded lower yesterday on the back of another round of QE tapering by the Federal Reserve in its meeting yesterday. Further, weak market sentiments in later part of the trade along with mixed inventories scenario exerted downside pressure on the prices.
 
However, sharp downside in the prices was prevented due to weakness in the DX.
 
In the Indian markets, base metals traded lower owing to Rupee appreciation.
 
 
Copper
 
LME Copper prices fell by 0.3 percent yesterday on the back of cut in stimulus measures by US Federal Reserve in its meeting yesterday. Further, weak market sentiments in later part of the trade acted as a negative factor.
 
However, sharp downside in the prices was restricted due to weakness in the DX. Additionally, decline in LME Copper inventories by 1.2 percent cushioned sharp downside in the prices. The red metal touched an intra-day low of $7125/tonne and closed at $7128.8/tonne in yesterday’s trading session.
 
MCX Copper prices slipped marginally yesterday and closed at Rs.452.90/kg after touching an intra-day low of Rs.449.45/kg on Wednesday.
 
 
Outlook
 
We expect base metals to trade on a lower note today on the back of weak market sentiments after QE tapering of $10 billion by the US Federal Reserve in yesterday’s meeting. Further, strength in the DX will exert downside pressure on the prices. Additionally, forecast for unfavorable economic data from the US in the evening session will act as a negative factor. Also, fall in Chinese manufacturing data will continue with downside pressure on the prices. However, sharp downside in the prices will be prevented due to expectations of positive economic data from the Euro Zone. In the Indian markets, Rupee depreciation will cushion sharp downside in the prices.

Stock Market Forum