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Commodities Industrial Metals

Industrial metals (copper, aluminium, nickel, etc.) daily review (July 09, 2014)

July 9, 2014, Wednesday, 05:23 GMT | 01:23 EST | 09:53 IST | 12:23 SGT
Contributed by Angel Broking


Base metals (except copper) traded on a positive note yesterday owing to favorable jobs data from the US. Also, positive trade balance data from Euro Zone along with decline in LME inventories acted as a positive factor.

However, unfavorable manufacturing data from UK along with weak global market sentiments restricted sharp upside in prices.

In the Indian markets, base metals traded higher in line with international markets.


Copper

LME Copper prices traded flat yesterday after making five-month high of $7,212 a tonne, the strongest since Feb. 19 yesterday on the back of short covering by money managers as the outlook for the global economy brightened after jobs openings data from the US rose to the highest level in seven years despite lag in hiring. Also, decline of 0.8 percent in inventories acted as a positive factor.

However, rise in risk aversion in market sentiments along with negative manufacturing data from UK caped sharp gains.

MCX Copper prices gained percent taking cues from international markets.


Outlook

We except LME Copper prices to trade higher although the Chinese inflation data released this morning was unfavorable. On the contrary, optimism regarding growth in the US economy will support gains.

However, prices may reverse trend in the evening session if the FOMC meeting minutes points toward early rate hike.

MCX Copper prices will take cues from trends in international markets

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