Base metals were trading sideways in thin volumes on Thursday, 22nd December ahead of holiday mood. The ECB loans to the banks to bolster the region's banks did not embolden the investors. The rise in Spain and Italy bond yields was also renewed the concerns on the euro zone debt crisis contagion.
Comex Copper future for most active March contract was trading flat at $3.3955 a pound compared to $3.3945 a pound traded last day. SHFE copper future for the most active March 2012 contract was trading at 54950 yuan per tonne, up 0.75% (410 yuan). At MCX, Copper for delivery in February remained unchanged at Rs. 398.1 per kg.
The European Central Bank (ECB) loaned 489 billion euros ($639 billion) to 523 banks for three years. Even though ECB funding may not cure the ailing Europe, the liquidity provided by them senses some stability.
Despite the strong demand at the ECB's long-term funding operation, yields of highly indebted Italy and Spain inched higher. The spread between the Italian and German 10-year government bond yields widened by some 20 basis points to 488 bps on Wednesday from the day before. The spread fell below 500 basis points on Monday.
The dollar index edged down by 0.05% at 79.98 against the basket of 6 major currencies as the mixed uncertainties in the market conspired with ahead of holiday mood pressurized the dollar.
Among other metals in domestic market at MCX, Nickel for delivery in December was drooping by 0.15% or Rs. 1.5 at Rs. 997.3 per kg. Lead was trading flat at Rs. 103.4 per kg and Zinc gaining by 0.36% or Rs. 0.35 at Rs. 98.45 per kg. Aluminium was also trading flat at Rs. 104.75 per kg.
