Informist, Tuesday, Aug 2, 2022
By Sandeep Sinha
MUMBAI – All base metal futures on the Multi Commodity Exchange of India and London Metal Exchange fell as investors shunned riskier assets amid growth concerns, monetary tightening by global central banks and increased geopolitical tension between the US and China.
* Also weighing down the sentiment is the weak manufacturing data from major economies and weakness in global equity markets.
* US House of Representatives Speaker Nancy Pelosi is expected to visit Taiwan today as part of her Asia tour, despite a warning from Beijing that it would never “sit idly by” if she made the trip to the self-ruled island.
* The rebound in the US dollar against a basket of major currencies and sharp appreciation in the rupee also hurt non-ferrous metal prices. A firm rupee makes commodities priced in dollars cheaper for domestic buyers.
* ALUMINIUM prices fell due to a sharp jump in LME stocks by 8,525 tn and traders raised short positions on the MCX. The sentiment was further dented by preliminary data compiled by China Real Estate Information Corp that showed the top 100 developers’ home sales slumped in July.
* For further cues, investors will look at US job openings and labour turnover survey data later today.
* COPPER contracts pared earlier losses but were in the red as market players increased their short positions on the domestic bourse. The weak economic data amid slowing global growth further put pressure on the price.
* At 1550 IST, on the MCX, the August futures contract of:
–Aluminium was at 210.20 rupees, down 0.4%
–Copper was at 643.15 rupees a kg, down 0.7%
–Lead was at 178.0 rupees a kg, down 0.4%
–Zinc was at 296.10 rupees a kg, down 0.8%
* Outlook for the evening session on MCX:
–Aluminium contract seen at 206.20-214.0 rupees a kg
–Copper seen at 640.0-657.0 rupees a kg
–Lead seen at 176.70-181.20 rupees a kg
–Zinc seen at 293.40–302.90 rupees a kg
US$1 = 78.71 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Michael Correya
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