Neal Bhai Reports (NBR) – MCX Copper settled down 0.49% at 415.30 reflecting faltering sentiment among investors amid mounting concerns over an economic slowdown.
Prices tumbled in most Chinese commodities following a pre-Christmas holiday sell-off in overseas markets, with investors rattled by a likelihood of a prolonged U.S. government shutdown and the U.S. Treasury secretary’s convening of a crisis group meeting to calm markets.
It can face resistance key near ₹ 428 and can take support key near ₹ 408. Copper is being supported by gains in crude oil and equity markets, although concerns over slowing growth in top metals consumer China are pressuring prices.
Trade is generally lukewarm during the Christmas holiday period. China is unlikely to add more refined copper output before producers reach an agreement on new treatment and refining charges.
A meeting to discuss the TC/RCs for the first quarter next year is scheduled to be held on Thursday. Last night SHFE base metals, except for copper and aluminium, traded lower across the board overnight. Nickel dropped some 1.3%, lead fell 1.1% zinc dipped 0.1%.
While the LME was closed on Tuesday for Christmas. The US dollar fell against the major safe-haven as investors cut their exposure to riskier assets amid the partial US government shutdown and signs of confrontation between the White House and the Federal Reserve.
China took further steps in opening up its market on Tuesday by rolling out a shorter negative list for market access. The latest version of the negative list for market access consists 151 items and 581 rules, down by 177 and 288, respectively, compared with the previous version.
