MCX Copper prices gained to more than two week highs on falling inventories - Geojit Financial Services
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MCX Copper prices gained to more than two week highs on falling inventories in major exchange holding warehouses, supply disruption in Peru and improved risk appetite.
Global Economy
• In the last week, global Investors sentiments were clung to surging energy prices, concerns about inflation and negotiations on the US debt ceiling.
• US Dow Jones Industrial Average index gained in volatile previous week session with its strongest gains since June, while US 10 year Treasury yields rose above 1.6% despite weak job report. China’s benchmark equity index closed higher on return to trade after Golden week holidays. European peers gains as well.
• US job growth fell further in September by missing the expectation. Unemployment rate fell to 4.8 percent, the lowest since February 2020.
• US Factory orders increased by 1.2 percent in August.
Copper
• LME copper gained 2.55 percent during the last week, COMEX copper gained 2.13 percent, while Shanghai copper gained 1.55 percent.
• Meanwhile, October futures in MCX settled with a gain near 3.00 percent and closed at Rs.728.85 per kg.
• Conflicts between Glencore mine and an Andean community in Peru melted down after reaching an agreement to begin talks for a new deal between company and the residents.
Outlook: Trend remains positive due to rising demand due to broad based global industrial recovery and concerns over supply shortage. However a strong dollar limiting major rallies in the counter.
LME: Though the broad trend remain on the positive there are chance of choppy trading ahead. A direct drop below $8600 is a sign of weakness.
MCX Oct: As long as prices stay above 650 there are chances of recovery upticks to continue in near future. A direct drop below 465 is a signal of short term weakens.
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