European debt crisis woes resurfaced into the global financial markets. The political and economic turmoil in the European countries propelled investors to sell off the risky assets and favoring the safe haven dollar. Greece elections were creating major riots in the financial markets. But, the fleeted glimpse of jump in factory orders of Germany solacing metals from its huge fall. The decline in LME inventories of Copper might curb huge losses in the metal.
LME Copper was easing by 0.7% at $8134.25 per tonne on Tuesday and Comex Copper future for the most active July contract was trading at $3.74 a pound, down 2%( 7 cents). SHFE Copper future for most active August 2012 contract settled at 57840 yuan per tonne, up by 0.5% (310 yuan). Likewise at MCX, Copper for delivery in June was tumbling by 1.2% or Rs 5.15 at Rs 436.9 per kg with its intraday high at Rs 442.3 per kg and Rs 435.9 per kg.
The dollar index buoyed by 0.2% at 79.7 against the basket of 6 major currencies as the reduced risk appetite in the global financial markets favored safe haven dollar.
Worries mounted over the inability of Greek party leaders to form a government after inconclusive parliamentary elections over the weekend. Greece's conservative, pro-bailout New Democracy party late Monday failed to form a coalition government in the wake of Sunday's parliamentary elections. The hard-left Syriza party, which opposes the terms of Greece's latest rescue, now has the opportunity to form a government.
Germany, the euro region's biggest economy, reported yesterday that factory orders jumped 2.2 percent from a month earlier in March, more than 0.6 percent in February
In industrial metal news, Chile's copper exports totaled $3.58 billion in April, up 57.3% from the $2.27 billion on y-o-y basis, as per Central Bank.
Exports totaled $14.05 billion in the first four months of 2012, up 34.2% from the $10.47 billion in sales registered in the same period last year. Chile's total mining exports were $3.95 billion in April, down 7.2% from the April 2011 figure of $4.26 billion.
Among other metals at LME, Aluminium was also trading lower by 0.6% at $2063.25 per tonne and Zinc was dropping by 1% at $1980 per tonne. Lead was also plunging by 0.9% ay $2086.25 per tonne. Nickel was slumpin down by 0.9% at $17426 per tonne.
Among other metals in the domestic market at MCX, Aluminium was also trading lower by 0.9% or Rs 1 at Rs 108.8 per kg and lead was dropping by 1.2% or Rs 1.3 at Rs 111.15 per kg. Zinc was also plunging by 1.3% or Rs 1.35 at Rs 105.55 per kg. Nickel for delivery in May tested an intraday high of Rs 946 per kg and low of Rs 929.2 per kg and is trading at Rs 930.8 per kg, down 1.7% or Rs 16.1.
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