Base Metals
LME markets were closed yesterday n the eve of Spring Day Holiday. On Friday, all the bases metals on the LME traded lower owing to strength in the DX. Also, persistent Greece concerns continued to bother demand for metals.
On the MCX, base metals apart from Lead and Zinc traded on a positive note owing to Rupee depreciation.
Copper
LME Copper prices plunged by 1.4 percent on Friday as dollar rebounded following stronger than expected core inflation reading. The 0.3% mom rise in core CPI in May was the strongest gain since January 2013 and was seen as a sign that inflation is finally climbing back to Fed's target.
Also, Greece negotiations with creditors did not show any sign of progress, thereby increasing the chances of default. However, decline of 0.4 percent in LME stocks restricted sharp losses.
MCX copper prices rose by 0.8 percent and closed at Rs.399.8/kg on Monday owing to Rupee depreciation.
Outlook
We expect LME Copper prices to trade lower as strength in the DX after the US Federal Reserve sent a strong signal it would raise interest rates this year, will exert pressure on prices. Also, investors will await durable goods orders and consumer confidence data for further cues on the US economy.
On the MCX, Copper prices are expected to trade lower in line with international trends.
Contributed by Angel Broking
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