The commitment shown by European Central Bank (ECB) President, Mario Draghi, towards Euro polished the base metals on Thursday. Overall dull weak of metals saw some spark after ECB President said that” The ECB is ready to do whatever it takes to preserve the euro.” The news helped Euro recover against its peer Dollar from its two year lows. The pair closed at 1.2277, up 129 pips.
Recovering Euro ignored the news that Moody's Services lowered rating outlook on 17 German banks to negative. Moody's has earlier cut the outlook on Germany sovereign ratings. France unemployment rate remained high in June. The jobseekers increased by 23700 to 2.946 million in June.
In US, labour department said that initial jobless claims declined to 353000 for week ending 21 July, compared to a revised figure of 388000. National Association of Realtors (NAR) said that pending home sales declined by 1.4% to 99.3 in June.
Three month forwards LME Copper settled at $ 7511 per tonne, up $ 70 on 26 July 2012. Early electronic trades are witnessing some profit booking in Copper that quotes at $ 7500 per tonne. MCX Copper, August expiry contract declined on account of strength in Indian Rupee. The contract closed at Rs 418.6 per kg, down 0.51%. Indian Rupee gained 64 pips to close at 55.52 against the Dollar.
Lead has remained strong on account good battery demand and power crisis in developing nations. LME Three month Lead ended with gains of $ 15 per tonne, at $ 1878 per tonne. Indian demand for lead batteries has remained robust in current fiscal due to soaring temperatures and power cuts in Northern and Southern regions. UPS and inverter sales pick up in summers. In medium term, if inflation is controlled it will pave way for rate cuts by RBI which currently seems reluctant. This will increase the demand for automobiles in the country, directly benefitting Lead.
After a poor guidance by Arcelor Mittal, Steel material Nickel still amplified on weak Dollar. LME Nickel gained $ 210 per tonne to close at $ 15965 per tonne. MCX Nickel was lower at Rs 883 per kg, down 1%.
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