The Shanghai Futures Exchange (SHFE) base metals closed mostly with losses as the market players were worried about the economic recession again following Powell’s hawkish speech delivered at the Jackson Hole meeting.
China shuts down its major market as Covid cases spike
Base metals prices fell after rising coronavirus cases in China. China’s technology hub Shenzhen on Monday ordered the closure of the world’s largest electronics wholesale market to contain a recent spike in coronavirus cases in the southern city. The market will be closed till Thursday, as per reports.
Base metals market performance – 29 August
SHFE copper slid 1.29%, aluminium inched up 0.03%, lead lost 0.33%, and zinc fell 1.21%.
MCX aluminum slid 0.2%, nickel decreased 1.5%, lead down 0.2%, copper down 1.3%, zinc fell slightly 0.5% d-o-d, yesterday.
LME was closed on account of a bank holiday.
Stock levels decrease d-o-d
LME registered warehouse stocks of base metals fell by up to 1.3%. Copper stocks were down by the most (-1.31%), SteelMint noted.
Oil prices move up
Brent oil futures rose by 2.9% to $104 per barrel and crude oil WTI futures increased marginally from $96.65 to $96.80 d-o-d per barrel at the time of reporting.
Currency exchange
The domestic rupee tumbled to a new low against the US dollar yesterday to $80.11 however it recovered today. The domestic unit traded at 79.76 against the greenback at the time of reporting.
Moreover, concerns over global economic slowdown and inflation worries may also put pressure on the rupee, SteelMint opined.
The dollar index, which gauges the value of the dollar in a basket of six different currencies, hovered at around $108.68, falling by 0.51% against last session.
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