Informist, Wednesday, Sep 7, 2022
By Sandeep Sinha
MUMBAI – Futures contracts of all base metals traded in the red on the Multi Commodity Exchange of India and the London Metal Exchange due to lower risk appetite amid weak economic data from China, and a strong dollar.
* China's General Administration of Customs data showed, that the country’s exports grew by 7% in August against 18% gain registered in July. Imports were up a meagre 0.8% last month from 2.3% in July due to fresh COVID-19 restrictions and heatwave across most parts of the country. China is the top producer and consumer of base metals.
* The dollar index touched a fresh two-decade high of 110.69 during the day against a basket of major currencies on safe-haven demand. A firm greenback makes dollar-denominated commodities expensive for holders of other currencies.
* ALUMINIUM price hit a fresh 17-month low on LME today on worries regarding weakening global growth and fresh stock inflows in LME-accredited warehouses eased supply concerns. The price has fallen below the key averages on the daily chart. The momentum oscillator Relative Strength Index is at 31.82, indicating further downside in the price.
* "Commodities may remain volatile amid volatile energy prices and persisting worries about China and Fed’s monetary tightening outlook," Kotak Securities said in a note. "The sharp sell-off has made commodities vulnerable to short-covering move. However, the general bias may remain on the downside unless we see a significant correction in the US dollar."
* Market participants look forward to Federal Reserve Vice-Chair Lael Brainard speech later today and the European Central Bank's monetary policy decision on Thursday for further cues.
* According to data published by Eurostat, Eurozone Apr-Jun GDP increased by 0.8% from Jan-Mar quarter on higher consumer and government spending. While Australia Apr-Jun GDP rose 3.6% on year, led by higher household spending and exports. Australia is one of the biggest producers and exporters of commodities in the world.
* COPPER contracts slipped as market players increased fresh short positions on the domestic bourse, and owing to a firm dollar.
* ZINC price fell on weakening demand from China and traders raising short positions on the MCX.
* At 1700 IST, on the MCX, the September futures contract of:
–Aluminium was at 197.80 rupees, down 0.8%
–Copper was at 640.20 rupees a kg, down 0.1%
–Lead was at 176.40 rupees a kg, down 0.5%
–Zinc was at 281.95 rupees a kg, down 1.3%
* Outlook for the evening session on MCX:
–Aluminium contract seen at 197.10-200.20 rupees a kg
–Copper seen at 636.30-645.80 rupees a kg
–Lead seen at 175.80-177.30 rupees a kg
–Zinc seen at 279.90–285.50 rupees a kg
End
US$1 = 79.90 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Deepshikha Bhardwaj
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 (11) 4220-1000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2022. All rights reserved.
Informist, Wednesday, Sep 7, 2022
By Sandeep Sinha
MUMBAI – Futures contracts of all base metals traded in the red on the Multi Commodity Exchange of India and the London Metal Exchange due to lower risk appetite amid weak economic data from China, and a strong dollar.
* China's General Administration of Customs data showed, that the country’s exports grew by 7% in August against 18% gain registered in July. Imports were up a meagre 0.8% last month from 2.3% in July due to fresh COVID-19 restrictions and heatwave across most parts of the country. China is the top producer and consumer of base metals.
* The dollar index touched a fresh two-decade high of 110.69 during the day against a basket of major currencies on safe-haven demand. A firm greenback makes dollar-denominated commodities expensive for holders of other currencies.
* ALUMINIUM price hit a fresh 17-month low on LME today on worries regarding weakening global growth and fresh stock inflows in LME-accredited warehouses eased supply concerns. The price has fallen below the key averages on the daily chart. The momentum oscillator Relative Strength Index is at 31.82, indicating further downside in the price.
* "Commodities may remain volatile amid volatile energy prices and persisting worries about China and Fed’s monetary tightening outlook," Kotak Securities said in a note. "The sharp sell-off has made commodities vulnerable to short-covering move. However, the general bias may remain on the downside unless we see a significant correction in the US dollar."
* Market participants look forward to Federal Reserve Vice-Chair Lael Brainard speech later today and the European Central Bank's monetary policy decision on Thursday for further cues.
* According to data published by Eurostat, Eurozone Apr-Jun GDP increased by 0.8% from Jan-Mar quarter on higher consumer and government spending. While Australia Apr-Jun GDP rose 3.6% on year, led by higher household spending and exports. Australia is one of the biggest producers and exporters of commodities in the world.
* COPPER contracts slipped as market players increased fresh short positions on the domestic bourse, and owing to a firm dollar.
* ZINC price fell on weakening demand from China and traders raising short positions on the MCX.
* At 1700 IST, on the MCX, the September futures contract of:
–Aluminium was at 197.80 rupees, down 0.8%
–Copper was at 640.20 rupees a kg, down 0.1%
–Lead was at 176.40 rupees a kg, down 0.5%
–Zinc was at 281.95 rupees a kg, down 1.3%
* Outlook for the evening session on MCX:
–Aluminium contract seen at 197.10-200.20 rupees a kg
–Copper seen at 636.30-645.80 rupees a kg
–Lead seen at 175.80-177.30 rupees a kg
–Zinc seen at 279.90–285.50 rupees a kg
End
US$1 = 79.90 rupees
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Deepshikha Bhardwaj
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 (11) 4220-1000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2022. All rights reserved.
