NEW YORK (TheStreet) -- After trading in the red Thursday, base metals bounced back on short-covering and stronger equity markets in early hours of trading. Positive economic data releases from Europe and the U.S., coupled with a stronger euro, could pull back base metals into positive territory.
Major economic releases for the day include Consumer Price Index for July, which came in at 0.3%, against the 0.2% consensus estimates and a negative 0.1% recorded in the earlier month. Meanwhile, advance retail sales for July were at 0.4%, against 0.5% consensus estimates and a negative 0.5% recorded in the earlier month. The Michigan Consumer Sentiment Index for August came in at 69.6 over the prior month's 67.8. Among the leading indicators, business inventories for June were up 0.3% as compared to 0.1% a month earlier.
Among economic data releases Thursday, import price index for July came in at 0.2%, below market expectation of 0.4%. Initial jobless claims for the week ended Aug. 7 stood at 484,000, above the market estimation of 465,000 and the earlier week's 479,000. Continuing claims for week ended July 31 were at 4.45 million, below the market forecast of 4.54 million.
Copper
Copper for three-month delivery inched up 0.3% to two-week lows of $7,300 on the London Metal Exchange as the dollar weakened. LME copper inventories added 2,750 tonnes to 409,075 tonnes Thursday. Copper faces support at $7,279 and resistance at $7,471.
Southern Copper(SCCO) announced that increasing prices and restart of operations at a mine, after a three-year shutdown, will improve earnings in 2011. For the world's largest copper deposit, the company will invest $100 million in repair work and an additional $3.8 billion to double mine production to 460,000 tons.
Southern Copper, which closed at $29.59 in the previous trading session, finds support at $29.04 and resistance at $29.98. Meanwhile, Freeport-McMoRan Copper & Gold(FCX) closed at $70.39 with support and resistance at $69.25 and $71.43, respectively. Teck Resources(TCK) closed at $32.6, with support at $32.26 and resistance at $33.05.
Aluminum
Aluminum for delivery within three months remained relatively flat at $2,165 per tonne on the LME. The metal's LME inventories were down 4,125 tonnes to settle at 4.38 million tonnes Thursday. Aluminum finds support and resistance at $2,164 and $2,210, respectively.
Aluminum stockpiles in Japan rose 3.3% in July as compared to a month ago. The country is the largest importer of aluminum, widely used in the auto and housing industries. Inventories at three of its ports soared to 208,200 metric tons at the end of July as compared to 201,500 tons at the end of the earlier month.
Alcoa(AA) closed trading at $10.73, with resistance at $10.93 and support at $11.13. Century Aluminum(CENX) closed at $10.15, with support and resistance at $9.76 and $10.44, respectively. Kaiser Aluminum(KALU) closed at $37.41, with support at $37.09 and resistance at $37.69.
Nickel
Nickel for delivery within three months was up 1.5% to $21,750 per ton on the LME. Nickel inventories on the LME rose 396 tonnes to 116,694 tonnes Thursday. Nickel finds support at $22,130, while resistance lies at $22,250.
Glencore, the world's largest commodities trader, offered to buy Norilsk Nickel's entire nickel production in a deal that would give the trading house control over almost 50% of the global nickel trade. However, Norilsk rebuffed the offer as the deal could have a negative impact on the company.
Zinc
Zinc for delivery within three months increased 0.7% to $2,071 per ton on the LME. Zinc stockpiles narrowed 100 tonnes on Thursday to close at 616,875 tonnes. The metal finds resistance at $2,156.
Lead
Lead accumulated 0.9% to $2,119 per ton on the LME. Lead inventories remained unchanged at 190,425 tonnes on Thursday. Lead finds resistance at $2,195.
