LME
COPPER TESTS FIVE MONTH LOWS ON WEAK CHINA PMI
DATE: 01/06/2012
London Copper prices tested a five month lows on the back of weakness in
China PMI. The HSBC China Manufacturing PMI declined to 48.4 from 49.3 in
April. This was the seventh straight month when PMI showed a decline. The
official PMI by China fell to 50.4 in May from 53.3 in April. The April reading
was at 13th month high. No news is currently pointing at positive scenario in
metals.
The new claims for US
unemployment benefits increased by 10000 to 383000 for the week. The level was
however below 400000 mark that is a benchmark. Meanwhile, European Union
struggled to find an amicable solution for the debt crisis. Dollar was at 21
highs against the EURO. The US currency has seen strong improvement towards
1.2358 against the EURO.
LME three month
forward prices of Copper declined towards $ 7456 per tonne on Friday, which is
its five month low. The contract settled at $ 8390 per tonne at the initiation
of this year from where prices have contracted by 11%. MCX June Copper declined
by 0.75% on Friday to close at Rs 417 per kg. Supports for contract is at Rs
415 and 410 per kg, while Resistance are at Rs 421-424 per kg.
POWERED BY: COMMIODITY
INSIGHTS
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