II:Base Metals Accentuated Amid Strong US Consumer Index Data
Short covering favored Copper at MCX
Base metals ended mostly higher on Friday, 16th December after a string of losses during the week but could not recoup those losses completely. The strong US economic data aided relief buying but the continued concerns on European debt crisis curbed huge gains in the metals space.
Comex Copper future for most active March contract settled at $3.331 a pound, up 1.96% (6 cents). Benchmark Copper at LME ended higher at $7360 per tonne, up 0.96% ($70). Likewise at MCX, Copper for delivery in February slumped by 0.23% or Rs. 0.9 at Rs. 391.6 per kg with its high at Rs. 395.6 per kg and low at Rs. 386.1 per kg.
The US consumer prices were unchanged in November as a drop in energy costs offset a slight rise in food prices and other items. The Consumer Sentiment Index in December showed a rise to 67.7 from November's 64.1.
But, the investor's jitters regarding the continued European debt crisis still overwhelmed the sentiment pared huge gains in the metals. The comments by the International Monetary Fund chief Christine Lagarde that the global economic outlook was quite gloomy. She called for international help to battle the sovereign-debt crisis, which some observers read as a sign the situation was worsening added to the pessimistic tone.
Investors are still braced for looming ratings agency downgrades of euro zone sovereigns amidst the warnings given by major ratings agencies and the change in the rating status of few European banks during the last week.
The dollar index plunged by 0.14% at 80.17 against the basket of 6 major currencies amidst the few gains in the euro but the investors fears about the European debt crisis still weighs.
Among other metals at MCX, Aluminium lost 0.52% or Rs. 0.55 at Rs. 105.6 per kg and touched an intraday high of Rs. 106.25 per kg and low of Rs. 104.6 per kg. Lead dropped by 2.18% or Rs. 2.3 at Rs. 103.4 per kg and Zinc fell by 0.9% or Rs. 0.9 at Rs. 98.8 per kg. Nickel for delivery in December surged by 1.5% or Rs. 14.4 at Rs. 976.8 per kg.
Among other traded metals at LME , lead surged by 0.48% at $2,000 a ton and nickel gained by 1.54% at $18,125 a ton. Aluminum esteemed by 1.18% at $2,009.5 a ton and zinc rose by 0.43% to end at $1,873 a ton.
