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Informist, Friday, Oct. 4, 2024

By Ashutosh Pati

MUMBAI – Futures contracts of base metals rose on the Multi Commodity Exchange of India and the London Metal Exchange as Chinese economic stimulus measures continued to support market sentiment, analysts said. Market participants expect the measures to boost the Chinese economy and the demand for metals. However, further gains were capped by a strong dollar, which makes commodities priced in the greenback expensive for holders of other currencies.

"China returns Tuesday 8th October and clearly their behaviour is going to be closely monitored, although our takeaway from recent government intervention is that they are going to improve consumer sentiment, and a put is in place," Al Munro, strategist at London-based brokerage Marex said in a note. Chinese markets are closed from Oct. 1 to Oct. 7 for National Day.

At 1925 IST, the dollar index, which measures the strength of the greenback against a basket of six major currencies, was up 0.5% at 102.48 after US non-farm payroll employment increased by 254,000 in September, higher than Dow Jones analysts' expectation of a rise of 150,000. The unemployment rate slipped to 4.1% in September from 4.2% in August, according to a report by the US Bureau of Labor Statistics.

The stronger-than-expected data from the US has increased market bets of slower interest rate cuts by the US Federal Reserve. The odds of a 25-basis-point interest rate cut by the US Fed in November rose to 92.9% from 46.7% a week ago, according to the CME FedWatch tool. The probability of a 50-bps rate cut is 7.1% compared to 53.3% a week ago. 

At 1925 IST, on the MCX, the September futures contracts of:

- ALUMINIUM was at INR 243.45 per kg, up 1.1%

- COPPER was at INR 859.40 per kg, up 0.8% 

- LEAD was at INR 186.00 per kg, up 0.1%

- ZINC was at INR 288.45 per kg, up 1.6%

Trading levels for the day on the MCX:

- Aluminium contract seen at INR 236.30-INR 248.80 

- Copper contract seen at INR 836.20-INR 872.80 

- Lead contract seen at INR 183.00-INR 189.60 

- Zinc contract seen at INR 279.20-INR 293.60

End

US$1 = INR 83.97

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Saji George Titus

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