non-ferrous metals market review for 03.02.10
Dynamics
On Wednesday, February 3 the price of nonferrous metals on the London stock exchange finished the trading session with a decrease in value against the background of strengthening U.S. dollar on the foreign exchange market, FOREX, and also because of the negative dynamics of equity markets and adjacent areas.
At the London Metal Exchange LME aluminum price closed at 2,086 dollars per tonne.
Copper at the close of the exchange was worth 6852 dollars per ton.
Nickel bidding up the price of 18050 dollars per tonne.
London Metal Exchange index, tracking the dynamics of six metals (index of metals, consists of fixing LME base metals aluminum, copper, nickel, lead, tin, zinc) amounted to 3078.1
Causes
On Wednesday, February 3 the price of nonferrous metals on the London stock exchange finished the trading session with a decrease in price under the following factors: 1 - strengthening of the dollar in the FOREX market amid falling risk appetite after the release of economic news and makrostatistiki (fear of budget deficits in Greece and Spain), 2 - Economic News - Chinese market participants curtail their trading activity on the eve of Chinese New Year, leaving the metals without the guiding force of its own market and making them more susceptible to external influences; 3 - reduction in adjacent markets, namely, the falling price of oil and precious metals, 4 - negative dynamics of the stock sites, where the major U.S. stock indexes closed in negative zone against the backdrop of frustration for some financial reports (Dow Jones industrial average - 10270.55 (-26.30, or -0.26%) Nasdaq Composite - 2190.91 (0.85, or 0.04%), SP 500 - 1097.28 (-6.04 or -0.55%)), 5 - technical reasons - the price of copper slid to 2.5-month low, breaking through key support level of 6560 dollars per ton, thus, the technical outlook for copper has deteriorated significantly, prompting increased sales.
From news worth noting that the British-Australian BHP Billiton Group will sell its 40% stake in a nickel project in the Philippines Puhada joint venture partner Asiaticus Management Corp. Resources Puhada lateritic nickel deposit, which is based on the project, estimated at 200 million tons of ore containing an average of 1,3% Ni.
What to expect?
Many analysts say that the policy of financial incentives and a very low interest rates encouraged the purchase of non-ferrous metals. Changes in both factors is not yet in sight, so you can confidently speak about a continuing rise in prices for nonferr73dous metals.
Why worry?
negative factor in the market of nonferrous metals, according to analysts appear fluctuations in the currency market and economic news, which carry a greater chance of increasing desire to profit-taking by market participants and the development of a deep downward correction.
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Recommendations on RTS Index futures on Thursday
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The level of support today for the RTS index today - 149 800
Quotes of most liquid stocks fluctuate insignificantly, without any distinct ideas about the previous closing levels