Base Metals Preview: COMEX Stays Under Stress

8 Feb 2022 , 09:00 AM

COMEX Copper stayed under stress after hitting a high of $4.50 per pound and fell near $4.42 per pound yesterday. The US stocks saw a choppy outing on Monday amid lack of major economic cues. China services sector continued to expand in January, albeit at a slower pace, the latest survey from Caixin showed on Monday with a PMI score of 51.4. Thats down from 53.1 in December, although it remains well above the boom-or-bust line of 50 that separates expansion from contraction. The rate of growth was the slowest seen in the current five-month sequence of expansion. The softer rise in new work was in part due to weaker external demand. New export orders fell for the first time in four months and at the quickest pace since October 2020. The survey also showed that the composite index slipped to 50.1 in January from 53.0 in December. This and a firm action in US dollar after recent spate of losses weighed on Copper. The red metal currently trades at $4.46 per pound, down 0.45% on the day. MCX Copper futures closed at Rs 755 per kg, down marginally on the day.

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