Market concerns over a trade war and a surge in supplies also weighed on the contract. While broad risk-off sentiment continued to affect commodity investment, volatile emerging market currencies and renewed trade disagreements added further downward pressure to the base metals complex, while equity markets continued to trail lower against the surging dollar.
Investors have turned more risk off since Monday on fears that the trade dispute between the US and its major trading partners undermines manufacturing growth, after the release of IHS Markit’s disappointing manufacturing PMIs in Europe and the Caxin manufacturing PMI in China for August.
Last night the US dollar index rallied to the highest since August 21, at 95.73, and closed at 95.41. Concerns over an escalating trade conflict between the US and China battered emerging market currencies and prompted investors to seek safe harbour of the dollar. Now a day ahead the market should monitor key data today including China’s Caixin service PMI for August, the eurozone retail sales, as well as the US trade balance in July.
Nickel MCX Free Tips: Ultimate Target ₹ 842— ₹ 800 – Wait For Any Upside, Need Patience – Neal Bhai Reports
