Base Metals
Base metals on the LME traded higher yesterday as reports of Chinese infrastructure spending raised risk appetite in the global markets and supported the base metals.
Also, investors were at bay ahead of Chinese national holiday and crucial data from the US and China.
On the MCX, all the base metal prices except Copper and Lead traded higher in line with international trends.
Copper
LME Copper prices traded marginally higher yesterday as China announced more infrastructure spending as it looks to shore up growth, approving subway projects in three cities including Beijing, Tianjian and Shenzhen worth a total 464.77 billion yuan. Also, weakness in the DX supported gains.
However, sharp gains were capped as Japan's factory output unexpectedly fell for the second straight month in August, fuelling worries that a prolonged slump could quash an unsteady economic recovery and raising expectations of fresh stimulus from the Bank of Japan to reignite growth.
MCX copper prices traded lower by 0.3 percent and closed at Rs.333/kg in line with Rupee appreciation.
Outlook
We expect Copper prices to trade lower today as investors will be cautious ahead of crucial ADP Non-Farm Employment Change data from the US due tonight. Also, investors will remain at bay ahead of Chinese weeklong National holiday starting October 1.
On the MCX, copper prices are expected to trade lower today in line with international trends.
Contributed by Angel Broking
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