Copper likely to trade in a range between 400.5-416.3
Natural Gas market under fresh buying; Support seen at 204.1
NCDEX Soyabean under short covering
NCDEX Ref.Soya Oil may trade in range between 727-747
Crude Oil market under short covering; Support seen at 3174
Zinc on MCX settled down 1.51% at 169.50 tracking weakness from LME zinc which registered six consecutive trading days of decline as slower global economic growth weighed it to a month-low, below the $2,400/mt level.
Sentiments turn negative and prices comes under pressure from upward momentum in the United States dollar index although a marginal downturn in US equity markets hindered buying sentiment.
LME Zinc futures went down by around 2.5% during the afternoon, but closed above $2,400 per tonne after falling to their lowest level since September 2018 in the morning session. Record-low stocks of LME inventory continue to drive bouts of positive price action, but despite decade-low stock levels in on-warrant copper, zinc and lead, all three metals were subject to downward price pressure.
Last night the US dollar increased as weak economic data from some major economies caused concerns over global growth, and sparked demand for safe havens. The dollar index, which measures the greenback against six major peers, rose 0.71% at 96.81 in late trading.
US President Donald Trump said on Wednesday that the US stock market suffered “a little glitch” in December but that it would go up once he negotiates trade deals with China and others. From the economical data points Factory activity weakened across much of Europe and Asia in December as the US-China trade war and a slowdown in demand hit production in many economies.
Results of a Caixin survey on China’s manufacturing in December indicated that factory activity contracted for the first time in 19 months amid a trade dispute with the US.
Trading Ideas:
–Zinc trading range for the day is 166.5-174.3.
–Zinc prices dropped amid weak manufacturing data across major economies grew concerns about slower global growth.
–China’s manufacturing sector is expected to have contracted for the first time in more than two years in December, reinforcing a deteriorating economic outlook.
–An economic slowdown and ongoing trade tension with the US lowered manufacturing activity in China in December, the first since July 2016.
Courtesy: Kedia Commodities
Source: Commodityonline.com
