Base Metals
Base metals on the LME traded higher yesterday as weak economic data from China spurred expectations of further stimulus measures from the nation. Also, weakness in the DX acted as a positive factor.
Copper and lead was the biggest gainer in the pack yesterday with upside movement of 2.1 percent respectively
On the MCX, base metals traded on a positive note in line with international trends.
Copper
LME Copper notched up its strongest gain in four weeks on Thursday as Chinese stocks posted their biggest gain in nearly three months on Thursday, hitting fresh seven-year highs a day after weak China economic data raised prospects of a rate cut or other measures to stimulate economic growth.
Also, weak housing and building permits data from the US led to weakness in the DX, thereby providing support to the metal.
MCX copper prices traded higher by 2 percent and closed at Rs.383/kg on Thursday.
Outlook
We expect LME Copper prices to trade sideways today as investors await inflation data from the US and Euro Zone for further cues on the course of monetary policy. However, estimates of Prelim UoM Consumer Sentiment from the US along with rising hopes of stimulus from China will be supportive.
On the MCX, copper prices are expected to trade sideways taking cues from international markets.
Contributed by Angel Broking
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