The base metals have rebounded from earlier weakness and as of 07:17 BST are up an average of 0.7 percent led by a 1.2 percent rise in zinc to $1,879.50, with nickel up one percent to $10,910 and copper up 0.3 percent at $5,170.50. Earlier copper had been down 0.7 percent at a fresh low for the year at $5,118. Total volume has been 6,112 lots as of 07:12 BST.
The precious metals are up an average of 0.4 percent this morning with platinum up 0.8 percent, silver up 0.7 percent, palladium unchanged and gold up 0.3 percent at $1,096.50.
Over the weekend Chinese CPI came in a 1.6 percent, which was better than the previous reading of 1.4 percent, but PPI continued to drop, falling 5.4 percent, compared with a drop of 4.8 percent previously – this was the largest fall in PPI since November 2009.
In Shanghai, the base metals are up an average of 0.4 percent with lead up 1.4 percent, zinc up 0.5 percent, nickel up 0.3 percent, while copper and aluminium up just 0.1 percent and tin is off 0.2 percent. Copper is at Rmb 37,780, while spot copper in Changjiang is off 0.3 percent at Rmb 38,200-38,300. The backwardation between spot and the October contracts is at an equivalent of $83 per tonne, while the LME/Shanghai copper arb ratio is at 7.44 for the nearby month.
Precious metals in Shanghai are firmer with gold and silver up 0.7 and 0.8 percent respectively.
Chinese trade data showed copper imports up 0.2 percent in July compared with June, while aluminium unwrought and product exports were off 20 percent in July compared with June, but they were still up 26.6 percent compared with July 2014. This should be supportive for LME aluminium prices and premiums.
Equities were weaker on Friday with the Dow off 0.3 percent and the Euro Stoxx 50 off 0.8 percent. Equities in Asia this morning are mixed with the Nikkei up 0.4 percent, the Hang Seng is off 0.1 percent, the CSI 300 is up 4.1 percent and the Kospi is off 0.4 percent.
Currencies – the dollar index is fairly flat albeit in high ground around 97.63, as is the euro at 1.0962, while sterling is weaker at 1.5490, as is the rouble at 64.11, the aussie is firmer at 0.7395, while the yen remains weak at 124.46 and the yuan flat at 6.2096.
Economic data out of Japan this morning was mixed with bank lending rising 2.6 percent, the economy watchers sentiment was better than the previous month, but with consumer confidence edged lower. Later we get EU Sentix investor confidence and US labor market conditions index, plus FOMC members Stanley Fischer and Dennis Lockhart are speaking – see table below for more details.
The base metals are attempting to rebound this morning after seeing continuing weakness last week, the exception being lead and nickel that seem to be putting in bases. Generally the metals look oversold and rebounds have struggled to attract follow through buying. If there is follow through buying the short-covering could become a driver.
The precious metals seem to have put in bases and are getting some lift, but whether rallies can get going from here is another question. Like the base metals, if rallies do get going then short-covering could add fuel.
| Overnight Performance | ||||
| BST | 07:16:50 | +/- | +/- % | Lots |
| Cu | 5170.5 | 14 | 0.3% | 2876 |
| Al | 1590 | 6 | 0.4% | 457 |
| Ni | 10910 | 110 | 1.0% | 642 |
| Zn | 1879.5 | 22 | 1.2% | 1798 |
| Pb | 1732 | 11.5 | 0.7% | 333 |
| Sn | 15295 | 95 | 0.6% | 6 |
| Steel | 300 | 0 | 0.0% | Total |
| Average (BM ex-Steel) | 0.7% | 6112 | ||
| Gold | 1096.5 | 2.8 | 0.3% | |
| Silver | 14.89 | 0.1 | 0.7% | |
| Platinum | 966.7 | 7.7 | 0.8% | |
| Palladium | 597.9 | -0.1 | 0.0% | |
| Average PM | 0.4% | |||
| SHFE Prices 7:26 BST | Change | % Change | |
| Cu | 37780 | 30 | 0.1% |
| AL | 11980 | 15 | 0.1% |
| Zn | 14490 | 70 | 0.5% |
| Pb | 12995 | 180 | 1.4% |
| Ni | 80800 | 260 | 0.3% |
| Sn | 107130 | -210 | -0.2% |
| Average change (base metals) | 236.5 | 0.4% | |
| Rebar | 2041 | -20 | -1.0% |
| Au | 221.2 | 1.6 | 0.7% |
| Ag | 3247 | 29 | 0.9% |
| Economic Agenda | |||||
| BST | Country | Data | ACTUAL | Expected | Previous |
| 12:50am | Japan | Current Account | 1.30T | 1.41T | 1.64T |
| 12:50am | Japan | Bank Lending y/y | 2.6% | 2.5% | |
| 6:00am | Japan | BOJ Monthly Report | |||
| 6:00am | Japan | Consumer Confidence | 40.30 | 42.20 | 41.70 |
| 7:00am | Japan | Economy Watchers Sentiment | 51.60 | 53.10 | 51.00 |
| 9:30am | EU | Sentix Investor Confidence | 20.2 | 18.5 | |
| 12:15pm | US | FOMC Member Fischer Speaks | |||
| 2:00pm | US | FOMC Member Lockhart Speaks | |||
| 3:00pm | US | Labor Market Conditions Index m/m | 0.8 | ||
| 5:25pm | US | FOMC Member Lockhart Speaks | |||
The post Metals getting some lift, but will shorts cover? appeared first on The Bullion Desk.
No comments:
Post a Comment