India Base Metals
Most up on weak dollar, hopes of more stimulus in China
This story was originally published at 18:48 IST on 30 October 2024
Register to read our real-time news.Informist, Wednesday, Oct. 30, 2024
By Ashutosh Pati
MUMBAI – Futures contracts of most base metals rose on the Multi Commodity Exchange of India Wednesday, tracking gains on the London Metal Exchange, as the dollar index weakened following bleak US economic data. The sentiment was also lifted by prospects of additional fiscal stimulus in top consumer China.
At 1705 IST, the dollar index, which measures the strength in the greenback against a basket of six major currencies, was down 0.1% at 104.18. A weaker greenback makes dollar-denominated commodities, such as base metals, cheaper for holders of other currencies.
The number of job openings in the US fell to their lowest level in over three and a half years at 7.44 million in September, data from the US Bureau of Labor Statistics showed. The latest figure was down 1.9 million from the corresponding period last year.
China's top legislative body, the National People's Congress, is planning to announce a fresh fiscal package which could be worth over 10 trillion yuan ($1.4 trillion) on Nov. 8, Reuters reported. China is the major producer and consumer of non-ferrous metals and additional stimulus measures could boost demand for metals in the country.
For further cues, investors await the US GDP and the Automatic Data Processing non-farm employment change data due later Wednesday. They will also watch out for China's manufacturing purchasing managers' index on Thursday and the US non-farm payroll data on Friday.
ALUMINIUM prices rose, taking cues from LME, due to a weaker dollar. Inventories at LME-registered warehouses fell by 2,500 tonnes to 741,200 tonnes.
COPPER prices fell as inventories in LME-registered warehouses rose by 1,075 tonnes to 275,300 tonnes.
LEAD prices rose because of short covering by traders after three successive days of losses.
ZINC prices rose as zinc stocks at warehouses registered with the LME fell by 2,100 tonnes to 241,225 tonnes.
At 1705 IST, on the MCX, the November futures contracts of:
-Aluminium was at INR 242.40 per kg, up 0.1%
-Copper was at INR 843.75 per kg, down 0.2%
-Lead was at INR 180.60 per kg, up 0.3%
-Zinc was at INR 289.55 per kg, up 0.2%
Trading levels for the day on the MCX:
-Aluminium contract seen at INR 237.50-INR 247.80
-Copper contract seen at INR 832.00-INR 857.00
-Lead contract seen at INR 178.05-INR 182.05
-Zinc contract seen at INR 280.25-INR 296.85
End
US$1 = INR 84.08
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Akul Nishant Akhoury
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