All seems reasonably stable in LME Metal markets with todays spot prices on Copper, Aluminium, Lead and Nickel all trading within 5% of the months average. The Australian dollar also remains quite stable with the HSRA months average almost exactly the same as the latest market. It’s funny that when markets are like this, some analysists note that the market “lacks direction”, while others seem happy that we are seeing a bit of stability for a while.
Please find the following article for your perusal;
LME Metals End Mostly Higher; Struggle For Traction
By Francesca Freeman Of DOW JONES NEWSWIRES
LONDON (Dow Jones)–Base metals closed mostly higher on the London Metal Exchange Monday, recovering somewhat from earlier losses, but still struggling for traction following the previous week’s strong gains.
Industrial metals may continue to drift in sideways trade in the sessions ahead as the positive impact of last week’s Greek bailout approval begins to subside, said analysts. “With Greece now fading from the headlines…we could see the short-term advance in metals start to stall,” said INTL FCStone analyst Edward Meir.
Demand from top metals consumer China is also unlikely to provide significant underlying support for prices, as physical interest in base metals has been noticeably weak of late, he added.
Enthusiasm for Greece’s bailout faded Monday after the Group of 20 nations delayed making a decision on further aid for Europe or expanding the International Monetary Fund at a weekend meeting. Since base metals are used widely in construction and manufacturing, prices tend to be sensitive to economic news and data.
Still, the wider market mood improved somewhat later in the LME session following a pair of firm readings on the U.S. economy.