More Stories

Informist, Friday, Nov. 8, 2024

By Ashutosh Pati

MUMBAI – Futures contracts of all base metals fell on the Multi Commodity Exchange of India and the London Metal Exchange Friday as the latest stimulus measures from China fell short of market expectations, analysts said. The sentiment was also weighed down by a firm dollar and liquidation of long positions by traders.

At 1901 IST, the dollar index, which measures the strength of the dollar against a basket of six major currencies, was up 0.3% at 104.64 as investors absorbed the latest interest rate cut by the US Federal Reserve. A stronger dollar makes commodities, such as base metals, priced in the greenback expensive for buyers holding other currencies.

The US Federal Open Market Committee cut interest rates by 25 basis points to 4.5-4.75% early Friday. For further cues, investors await the University of Michigan consumer sentiment and inflation expectation report later Friday and China's industrial production and retail sales data next week.

China's Standing Committee of the People’s National Congress announced a 10 trillion yuan ($1.4 trillion) package on Friday to refinance local government debt and support the sluggish economy, CNBC reported. China's Minister of Finance Lan Fo'an told central authorities would issue 800 billion yuan a year in local government special bonds over five years, the report said.

The fiscal package announced by the Chinese leadership this morning was disappointing, and it remains questionable whether this package will provide a short-term boost to growth, Commerzbank said in a report.

ALUMINIUM prices fell as traders reduced their long positions on LME and MCX after a sharp gain on Thursday.

COPPER prices inched lower as China’s debt swap plan disappointed investors. The sentiment was further weighed down by the recovery in the dollar.  

LEAD prices fell as inventories at Shanghai Futures Exchange monitored warehouses rose by 9,932 tonnes on week to 66,298 tonnes.

ZINC contracts traded lower because the fresh stimulus announced by China would go towards servicing debt and not buying unsold homes.  

At 1903 IST, on the MCX, the November futures contracts of:

-Aluminium was at INR 243.45 per kg, down 1.4%

-Copper was at INR 838.65 per kg, down 1.3%

-Lead was at INR 181.65 per kg, down 0.1%

-Zinc was at INR 281.20 per kg, down 1.3%

Trading levels for the day on the MCX:

-Aluminium contract seen at INR 240.35-INR 252.25

-Copper contract seen at INR 826.00-INR 865.00

-Lead contract seen at INR 179.75-INR 183.95

-Zinc contract seen at INR 275.30-INR 292.30

End

US$1 = INR 84.38

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

Edited by Vidhi Verma

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2024. All rights reserved.