27 FEBRUARY 2013China Aluminium Network
Aluminium lowest in the Base metal market since late last year
Edited by : AL CIRCLE
2 min read
Aluminium hit its lowest for around three months and zinc and lead racked up fresh one-month lows although copper managed to hold above last Friday’s two-month lows.
China’s February HSBC flash PMI was at a four-month low of 50.4 against January’s 52.3, which had been the best for four months. But it was above the 50 level that separates expansion from contraction.
Despite steadier equities and relative stability in the euro, the complex is locked into a downswing now – the complex remains beset by uncertainty, traders said.
The euro moved up to around 1.3260 against the dollar – it had hit 1.3142 on Friday, its weakest since January 10.
For the metals, however, sentiment remains challenging, and the complex may well struggle further this week given that the decisive change in short-term sentiment has snuffed out the January rallies.
For financial markets, a downbeat macroeconomic backdrop has emerged – renewed worries over global growth have been fanned by consistently sub-par economic releases from the US and Europe in particular.
Today, although there are no front-line data releases, financial markets will gear up for US Federal Reserve chairman Ben Bernanke’s testimony to US lawmakers from Tuesday to Wednesday. Also overhanging markets will be the automatic spending cuts totalling $85 billion that will come into effect on Friday unless US Congress decides to delay them temporarily.
“Given the Chinese PMI data, we would not be surprised by further weakness in the base metals. The rebound in equities on Friday suggests there was some bargain hunting around but, given the potential for US spending cuts being triggered later this week, we still feel all markets are vulnerable on the downside,” William Adams of FastMarkets said.
In others, aluminium fell to its lowest since November 29, touching $2,029.25, and was last at $2,032, down $16 on Friday’s close. The psychological downside level is $2,000. Stocks fell, however, down 7,100 tonnes at 5,157,100 tonnes.
China’s February HSBC flash PMI was at a four-month low of 50.4 against January’s 52.3, which had been the best for four months. But it was above the 50 level that separates expansion from contraction.
Despite steadier equities and relative stability in the euro, the complex is locked into a downswing now – the complex remains beset by uncertainty, traders said.
The euro moved up to around 1.3260 against the dollar – it had hit 1.3142 on Friday, its weakest since January 10.
For the metals, however, sentiment remains challenging, and the complex may well struggle further this week given that the decisive change in short-term sentiment has snuffed out the January rallies.
For financial markets, a downbeat macroeconomic backdrop has emerged – renewed worries over global growth have been fanned by consistently sub-par economic releases from the US and Europe in particular.
Today, although there are no front-line data releases, financial markets will gear up for US Federal Reserve chairman Ben Bernanke’s testimony to US lawmakers from Tuesday to Wednesday. Also overhanging markets will be the automatic spending cuts totalling $85 billion that will come into effect on Friday unless US Congress decides to delay them temporarily.
“Given the Chinese PMI data, we would not be surprised by further weakness in the base metals. The rebound in equities on Friday suggests there was some bargain hunting around but, given the potential for US spending cuts being triggered later this week, we still feel all markets are vulnerable on the downside,” William Adams of FastMarkets said.
In others, aluminium fell to its lowest since November 29, touching $2,029.25, and was last at $2,032, down $16 on Friday’s close. The psychological downside level is $2,000. Stocks fell, however, down 7,100 tonnes at 5,157,100 tonnes.
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