India Base Metals
Most rise on weak dollar, hope of stimulus in China
This story was originally published at 16:59 IST on 3 December 2024
Register to read our real-time news.Informist, Tuesday, Dec. 3, 2024
By Ashutosh Pati
MUMBAI – Futures contracts of most base metals on the Multi Commodity Exchange of India rose, tracking gains on the London Metal Exchange because of a weak dollar. Sentiment was also lifted by hope of additional stimulus measures in China, analysts said.
At 1544 IST, the dollar index, which measures the strength of the greenback against a basket of six major currencies, was down 0.1% at 106.25. A weaker dollar makes commodities such as base metals, which are priced in the greenback, cheaper for buyers holding other currencies, lifting demand.
China skipped the Politburo readout for its regular November meeting, leading markets to speculate that stimulus support might be on its way, Daria Efanova, head of research at Sucden Financial, said in a note.
China's Politburo meeting in early-December and the central economic work conference in mid-December is likely to include economic policy announcements, Motilal Oswal Financial Services said in a report.
For further cues, investors await the US Job Openings and Labor Turnover Survey's monthly job openings data, due later in the day. They will also watch out for China Caixin services purchasing managers' index on Wednesday and US non-farm employment change data on Friday.
COPPER prices rose, taking cues from the LME as inventories at warehouses registered with the LME fell by 2,100 tonnes to 268,625 tonnes.
ALUMINIUM prices rose, taking cues from the LME because of a weak dollar. Prices also got support as aluminium stocks at LME-registered warehouses fell by 2,775 tonnes to 690,700 tonnes.
ZINC prices rose because of short-covering of positions by traders on the domestic exchange.
At 1544 IST, on the MCX, the December futures contract of:
–Aluminium was at INR 243.70 a kg, up 0.4%
–Copper was at INR 818.30 a kg, up 1.1%
–Lead was at INR 181.65 a kg, down 0.3%
–Zinc was at INR 286.60 a kg, up 0.3%
Trading levels for the day on the MCX:
-Aluminium contract seen at INR 238.40-245.50
-Copper contract seen at INR 800.00-818.00
-Lead contract seen at INR 180.20-183.40
-Zinc contract seen at INR 278.95-290.35
End
US$1 = INR 84.69
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Avishek Dutta
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