Informist, Thursday, Feb 8, 2024
By Sandeep Sinha
MUMBAI – Futures contracts of most base metals on the Multi Commodity Exchange of India were down today tracking the London Metal Exchange due to a rebound in the dollar ahead of the US jobless claims. Analysts polled by Dow Jones had estimated the jobless claims to come in at 220,000, down by 4,000 from last week. Investors will also take cues from a speech by Federal Open Market Committee member Thomas Barkin later today.
The dollar index, which measures the strength of the greenback against a basket of six major currencies, was up 0.2% at 104.18 at 1700 IST. A stronger greenback makes dollar-priced commodities such as base metals expensive for holders of other currencies.
According to China’s National Bureau of Statistics data released today, Chinese consumer price index dropped 0.8% on year in January, the fastest pace since the global financial crisis, as the world’s second-largest economy struggles with deflation pressures. The producer price index that measures factory gate prices fell 2.5% on year.
The week-long Chinese Lunar New Year holiday starting Friday also kept traders from taking fresh positions in base metals.
ALUMINIUM prices rose because of short-covering by traders on the domestic exchange.
COPPER contracts were a tad lower on worries of weak demand from China. The red metal prices were further pressured by a recovery in dollar.
At 1700 IST, on the MCX, the February futures contract of:
–Aluminium was at 201.80 rupees a kg, up 0.6%
–Copper was at 710.0 rupees a kg, down 0.2%
–LEAD was at 179.10 rupees a kg, down 0.1%
–ZINC was at 214.25 rupees a kg, down 0.5%
Outlook for the evening session on the MCX:
–Aluminium contract seen at 200.0-203.10 rupees
–Copper seen at 709.20-714.90 rupees
–Lead seen at 177.90-181.20 rupees
–Zinc seen at 212.40-217.90 rupees
End
US$1 = 82.96 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
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