Base Metal Updates

LME base metals were mixed and trading in tight ranges on Thursday due to lingering concerns about Greek debt and the U.S. fiscal situation. Copper showed signs of further correction after it settled down by $ 62 per tonne at $ 7743 per tonne. Indian Copper futures are likely to find resistance at Rs 441 per kg and support at Rs 434 per kg. The prices of February expiry closed at Rs 437.8 per kg.
LME Zinc ended at $ 2185 per tonne when last checked, down by $ 16 per tonne. A further increase of 3125 tonnes was noted in Zinc inventories today with total stockpiles at record high of 1200450 tonnes. MCX Zinc settled trading at Rs 110.2 per kg, up 0.23%.
Dollar was largely stronger last night before the US data after which it closed down. However till the time damage was done in metals and it induced selling pressure. Dollar closed marginally lower against the Euro at 1.295.
In the U.S., the Commerce Department reported earlier that new home sales fell by 0.3% to a seasonally adjusted 368000 units in October. There are also concerns about the need for the US Congress to reach a compromise to avoid $600 billion in tax increases and spending cuts due to start in January, a combination known as the fiscal cliff that could hurt the world's largest economy.
In Eurozone, National Institute of Statistics said that Spanish retail sales rose to a seasonally adjusted annual rate of -9.7% in October, from -11.0% in the preceding month.
Greece lenders reached an agreement this week to reduce country's debt-reduction target by EUR 40 billion to 124% of gross domestic product by 2020. But the lack of detail on how Greece will implement reforms needed to meet its new debt targets has affected investor confidence.

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