• Industrial metals (copper, aluminium, nickel, etc.) daily review (July 03, 2015)

    Base Metals

    Base metals on the LME traded mixed yesterday and continued to show signs of recovery as China's factory sector expanded slightly in June while growth in the services sector sped up. Also, a sliding dollar after weak U.S. monthly jobs data acted as a positive factor for dollar denominated base metals.

    However, continuing concerns over Chinese imports, oversupply and the continuing Greek overhang restricted sharp gains.

    On the MCX, all the base metal prices except Nickel traded negative owing to Rupee appreciation.


    Copper

    LME Copper prices traded higher by 0.3 percent on Thursday buoyed by weaker dollar after U.S. non-farm payrolls came in below expectations and the May and April numbers were revised down. Also, Chinese hedge funds taking profits on short positions to cover losses on China equities is providing support to the red metal.

    However, sharp gains were capped as IMF said Greece will need debt restructuring and a possible debt write-down to tackle its “unsustainable debt” and also slashed its growth forecast for Greece this year from 2.5 per cent to 0 per cent.

    MCX copper prices declined by 0.4 percent and closed at Rs.372.4/kg on Thursday owing to Rupee appreciation.


    Outlook

    We expect LME Copper prices to trade lower as the investors will be completely focused on developments in Greece with the US markets being closed today in observance of the July Fourth Independence Day holiday. Increasing signals from European Union lenders that a No vote on Sunday would jeopardize discussion of a further bailout programme will keep global investors wary. Also, China services PMI fell to 5-month low will exert pressure.

    On the MCX, Copper prices are expected to trade higher today owing to Rupee depreciation.

    Contributed by Angel Broking
About us
StockMarketsReview.com provides news coverage, analysis and researches for world stock markets, commodities and currencies. We publish articles provided by experts of leading brokerage and investment companies. At our website investors can find daily, weekly and monthly reports, news, recommendations on the IPOs and fundamental analysis for stocks which are currently traded at the stock exchange.