Copper yesterday
traded with the positive node and settled 0.37% up at 418.7 regained strength
after the release of data showing slowing contraction in euro zone mfg
activity, while renewed optimism over talks between Greece and its bondholders
provided further support. The euro zone’s PMI rose to 48.8 in Jan, compared to
a preliminary reading of 48.7 and up from 46.9 in Dec. Germany PMI’s came in at
51.0, indicating expansion and above an earlier estimate of 50.9. Meanwhile,
the dollar came under pressure after Greek newspaper Kathimerini reported that
the head of the IMF mission to Athens said talks on a new loan program for the
country will conclude within a matter of days.
Inthe other story
workers of one union at Teck Resources Ltd's Chilean Quebrada Blanca mine,
which produced 86,200 tonnes of copper in 2010, ratified strike action after
contract negotiations with the firm broke down, a union leader said late on
Tuesday night. However, a separate report from HSBC indicated that Chinese mfg
activity contracted for the third consecutive month. For today's session market
is looking to take support at 415.1, a break below could see a test of 411.6
and where as resistance is now likely to be seen at 420.7, a move above could see
prices testing 422.7.
Trading Ideas for share tips free trial :
Copper trading range
is 411.6-422.7.
Copper settled up
regained strength after the release of data showing slowing contraction in euro
zone mfg activity
Workers at Teck
Resources Ltd's Chilean mine, ratified strike action after contract
negotiations with the firm broke down
Copper daily stocks
at Shanghai exchange came up by 1402 tonnes.
Zinc yesterday traded
with the positive node and settled 0.19% up at 104.7 yesterday LME zinc prices
once dipped to USD 2,070/mt ahead of manufacturing PMI for major economies was
better than expected, with European economic data showing the manufacturing
activity is improving. Meanwhile, US economic data shows that the employees in
US private sector grew steadily, and construction spending increased as well.
As a result, LME zinc prices climbed gradually to above the 10dma, with prices
finally closing at USD 2,117.5/mt, up USD 12.5/mt. January PMI announced by
global major economies was better than market expectation, indicating that
global economy is recovering.
The US PMI announced
by ISM was 54.1, and the PMI was 50.5 from China, 51.0 from Germany, indicating
expansion of manufacture activities. In addition, the US private sector
payrolls for January increased by 170,000, in line with market expectation. The
global manufacture data and the US employment data both advanced, boosting
market expectation over demand for industrial commodities and risk appetite.
For today's session market is looking to take support at 103.4, a break below
could see a test of 102 and where as resistance is now likely to be seen at
105.7, a move above could see prices testing 106.6.
Trading Ideas:
Zinc trading range is
102-106.6.
Zinc gained with
European economic data showing the manufacturing activity is improving
US economic data
shows that employees in US private sector grew steadily, and construction
spending increased as well
Workers at Peruvian
miner Milpo's El Porvenir zinc and lead unit ended a strike after six days off
the job.
Nickel yesterday
traded with the positive node and settled 0.31% up at 1042.7 tracking LME
nickel which opened at USD 20,710/mt and closed at USD 21,039/mt overnight, up
by USD 302/mt from a day earlier, with the highest price at USD 21,150 mt and
the lowest price at USD 20,549/mt. China’s PMI for January was above 50, but
market was less encouraged by the data and LME nickel prices still fluctuated
during Asian trading hours. However, LME nickel prices advanced to certain
extent and finally closed at USD 21,039/mt from positive PMI from Germany, the
UK and the US. Upbeat PMI from major economies boosted market.
Regards,
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