LME Metal Markets and Exchange rates have remained reasonably steady over the past week with no real fluctuations to report. Markets continue to tread as cautiously as ever though, carefully watching both Europe and China for signs of what direction markets may take.
**** Aussie Dollar Steady Amid Improved Sentiment **** From dailytelegraph.com.au
The Australian dollar marked time despite data showing home sales on the mend and as investor sentiment towards the European debt crisis improved. At 1700 AEST yesterday, the local currency was trading at 98.75 US cents, up fractionally from 98.74 cents the previous day.
NAB senior economist David deGaris said the Australian dollar was almost unchanged this evening, having improved after a low start. “It looks like it’s just been tracking the investor sentiment throughout the day,” he said. “It opened weaker this morning, and then it’s recovered since.
Mr deGaris said that concerns around Spanish banks had certainly weakened the Australian dollar overnight, but it had been somewhat bolstered by better news from Greece. “The Greek stock market went up by over six per cent, so that was some counter,” he said.
**** LME Metals Little Changed; Spain Fears Cap Gains **** By Francesca Freeman Of DOW JONES NEWSWIRES
LONDON (Dow Jones)–Base metals are little changed on the London Metal Exchange Tuesday, trading cautiously as investors weigh potentially bullish news from China against the latest developments in the euro zone.
The mood in the wider markets remains subdued Tuesday, with early euro and equity gains undermined by persistent concerns over Spain’s troubled banking sector.
However, some good news has emerged from China, where media have reported that the country will soon introduce stimulus measures to revive demand for automobiles. According to the reports, the government plans to provide cash subsidies to residents of rural areas who purchase smaller cars, while encouraging the replacement of certain types of older vehicles. The news is potentially bullish for base metals, since many of them are used in the auto sector. China is also the world’s top consumer of metals.
On a technical basis, copper’s outlook looks generally bearish, with prices likely to remain choppy, said Justin Froome of Marex Spectron.
**** Metals Seen Volatile In Run-Up To Greek Election **** By Francesca Freeman Of DOW JONES NEWSWIRES
Trading conditions in both precious and base metal markets should become choppier in the run-up to the Greek election on June 17, says Standard Chartered. “The high level of uncertainty about the future Greek government remains a concern for investors, and we expect prices to be volatile,” it says.