Base metals futures at London Metal Exchange (LME) and Shangai Futures Exchange (SHFE) recovered by up to 3.5% against the previous closing following positive sentiments in the market, as per data maintained by SteelMint.
House passes $280 billion package to boost chip production in USA
The United States Senate recently passed a $280 billion Industrial Policy bill to strengthen the domestic semiconductor manufacturing, as per reports. It is expected to lower costs and create jobs.
Jow Biden, in a statement mentioned, “It will accelerate the manufacturing of semiconductors in America, lowering prices on everything from cars to dishwashers.”
US GDP shrinks for the second straight quarter
The US economy shrank in the second quarter at an annual rate of 0.9%, following a bigger drop in the first three months of 2022, as per reports.
Two quarters of negative growth is viewed as a strong signal that a recession is underway, and a downturn in the world’s largest economy would have global consequences in the coming time.
Base metals market performance – 28 July
MCX aluminium remained almost stable, copper down 0.47%, zinc increased 0.56%, lead gained slightly 0.11%.
SHFE copper was up 0.98%, aluminium lost 0.13%, lead slip 0.1%, and zinc gained 2.8%.
LME 3-month copper rose by 1.64%, aluminium gained 1.40%, lead moved down slightly 0.79%, zinc rose 3.47%, nickel increased 0.56%.
Stock levels mostly down by up to 1.5%
LME warehouse stocks of most base metals fell up to 1.5% on a d-o-d basis in the last trading session. Lead gained slightly by 1%.
Oil prices up
Brent oil futures rose 0.88% to $102.73 per barrel and crude oil WTI futures edged up by 1.10% to $97.48 per barrel at the time of reporting.
Currency exchange
The Indian rupee opened higher at 79.55 and further climbed to 79.38 in the session, against the US dollar.
The US dollar index hovered at around $105.60 at the time of reporting.
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