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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