Base metals were accentuating on Thursday, 19 July 2012, after stronger housing data from the United States and China eased concerns about the impact on demand for industrial metals from a slowdown in the global economy.
Sentiment was also boosted by the signs that China could announce further monetary easing measures citing the Premier Wen Jiabao affirmation that the government would step up efforts to boost the economy in the second half.
But, the spike in Spain's borrowing costs cramped huge gains in the metal space. However, investors were also awaited for the US home sales data due later today.
LME Copper surged by 1.2% at $7735.5 per tonne on Thursday and Comex Copper future for the most active September contract was trading higher by 1.1% or 4 cents at $3.512 a pound. Shanghai Copper for delivery in October 2012 settled at 56090 yuan per tonne, up 0.6% (340 yuan). Likewise at MCX, Copper for delivery in August was trading higher by 0.8% or Rs 3.4 at Rs 429.15 per kg.
The dollar index gained 0.1% at 82.97 against the basket of 6 major currencies on the back of improvement in the risk appetite in global markets.
House prices in China increased marginally in June from a month earlier, as per the National Bureau of Statistics. Out of the 70 major cities surveyed by the NBS, only 21 recorded a month-on-month decline in home prices in June compared to 40 in May.
The Spanish benchmark 10-year bond yield started rising ahead of the sale and crossed 7% afterwards. The Spanish Treasury raised a total EUR 2.98 billion from the sale of its 2-, 5-, and 7-year bonds, against a target of EUR 2 billion - EUR 3 billion.
Among other metals at LME, Aluminium was trading higher by 1.2% at $1928.5 per tonne and Zinc was also rising by 0.5% at $1878.5 per tonne. Lead was trading higher by 0.9% at $1917 per tonne. Nickel was trading at $16230 per tonne, up 1%.
Among other metals in the domestic market at MCX, Aluminium was trading higher by 0.7% or Rs 0.75 at Rs 105.45 per kg and lead was also trading higher by 0.7% or Rs 0.7 at Rs 105.75 per kg. Zinc was rising by 0.3% or Rs 0.35 at Rs 103.9 per kg. Nickel for delivery in July tested an intraday high of Rs 901.1 per kg and low of Rs 895.9 per kg and is trading at Rs 898.6 per kg, up 0.5% or Rs 4.7.
Powered by Commodity Insights