Base Metals
Base metals on the LME traded lower last week as strength in the Dollar Index hit demand for dollar denominated commodities. Also, official said Greece will not be able to repay a loan to the International Monetary Fund early next month unless a deal is reached with its creditors to unblock bailout funds.
However, shrp losses were cushioned as metals were buoyed by expectations of additional stimulus measures following weak manufacturing data from China.
On the MCX, base metals traded on a negative note in line with international trends.
Copper
LME Copper prices plunged by 4 percent last week Copper output from Peru's four top producers, Antamina, Southern Copper, Cerro Verde and Antapaccay, was normal, despite a national strike on Monday. In addition, weak manufacturing and home sales data from the US coupled with warning given by a Greek official over the country’s default if a deal is not finalized with creditors exerted pressure on prices.
However, the ECB suggested it may speed up its 1 trillion euro bond-buying campaign slightly to account for lower market liquidity in high summer thereby restricting sharp losses. Also, minutes from the Federal Reserve's April meeting showed officials doubted the economy was ready for an interest rate hike.
MCX copper prices fell by 1.6 percent and closed at Rs.396.5/kg on Friday.
Outlook
We expect LME Copper prices to trade sideways as Janet Yellen stated that interest rate hike is expected this year. However, major markets are closed today and absence of any major economic data will lead to a lackluster session.
On the MCX, Copper prices are expected to trade higher taking cues from Rupee depreciation.
Contributed by Angel Broking