Copper Is Likely To
Trade On Sideways During
Morning Session
19th March – 2012
Copper
is likely to trade on sideways during the morning session on Monday, 19th March
craving for US housing market index data due later today. Copper is likely to
find support at Rs 429 per kg and Rs 426 per kg and resistance at Rs 435 per kg
and Rs 439.6 per kg.
Copper
amplified on Friday, 16th March as the slowly ebbing Euro zone debt crisis woes
couple with the protracted recovery signals from the US economic recovery
helped the metal to recoup earlier losses and contribute to a weekly gain.
However, the bleak data from US coupled with the concerns on the Chinese demand
curbed huge gains in the metal. The weedy US dollar also favored the metals
space.
Copper
surged by 1.3% at $8593 per tonne on Friday at LME. Comex Copper dropped by
0.5% or 2 cents at $3.878 a pound compared to $3.8975 a pound traded last day.
MCX Copper buoyed by 0.6% or Rs 2.45 at Rs 432.15 per kg. The contract stood
above 9-day EMA and RSI stood at 58.8.
The
dollar index tumbled by 0.6% at 79.77 from its 9-week highs as the easing
concerns of euro zone debt crisis and US economic growth recovery improved the
risk appetite in the global markets and weighed down the safe haven dollar.
The
Reuters/University of Michigan consumer-sentiment index declined to 74.3 from 75.3
in February. Elsewhere in US economic data, consumer prices leapt in February,
though slightly less than expected, and the rise was due almost entirely to a
surge in gasoline prices. The Labor Department said its Consumer Price Index
increased 0.4% in February after advancing 0.2% in January.
Meanwhile,
industrial production was unchanged in February, matching January's print. but
lower than expectations of 0.4% gain. Capacity utilization was 78.7% in the
same period, a hair below estimates and January's 78.8%.
In
industrial metal news, Aluminum Corp of China Ltd (Chalco), China's top
aluminium maker, reported a bigger than expected fourth-quarter net loss of
729.6 million yuan ($115.3 million), spurred by lower metal prices and higher
costs, and warned of losses in the first quarter of 2012.
Russia's
United Company RUSAL Plc, the world's top aluminium maker, reported a 92% drop
in yearly net profit on Monday due to a supply glut and slower demand weighing
on the price of the metal, as well as a reduction in the value of its stake
Russian miner Norilsk Nickel.
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