Shanghai Futures Exchange (SHFE) and London Metal Exchange (LME) base metals closed with losses on 12 July, 2022, as per SteelMint assessment.
Subject to a stronger dollar as well as the need to curb COVID from spreading, commodities prices fell overnight, extending the downward trend. The Euro hit parity with the USD on Tuesday for the first time in 20 years.
The market shall focus the upcoming release of U.S. inflation data, which will guide the dollar’s recent trend. Consumption has shown signs of weakening in the off-season.
Base metal market performance:
LME copper slid 4.13%, aluminium lost 0.72%, lead fell 0.8%, and zinc fell nearly 1%.
SHFE copper down 3.57%, aluminium fell nearly 1%, lead shed 0.9%, and zinc fell 0.77%.
MCX aluminum fell 0.8%, zinc was down 0.9%, lead remained almost stable, while copper fell the most by 3.1% d-o-d, on the last trading day.
Stocks
The LME warehouse stocks of all base metals on a d-o-d basis fell by up to 2.1% on last trading session.
Oil extended losses below $100/ barrel
The oil prices are showing downward trend on escalating fears about an economic slowdown rippled through global markets, Also, the concerns of stronger dollar and China’s rising Covid cases have added to the pressure.
Brent oil futures fell to $100/barrel and crude oil WTI futures declined to $97.08 per barrel at the time of reporting.
Currency exchange
The Indian currency ended trading at 79.64 against the US dollar in early morning today tracking the strength of the American currency.
Meanwhile, the dollar index, which measures the strength against a basket of six currencies, gained 0.06% to 108.14 at the time of reporting.
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