Base metals market update

Base metals futures on the London Metal Exchange (LME) and Shangai Futures Exchange (SHFE) gained by up to 2% from the previous closing.

US unemployment rate edges down 

Non-farm payrolls rose by 528,000 in July and the unemployment rate in the USA stood at 3.5%, easily topping the estimates of 258,000 and 3.6%, respectively, data by US Bureau of Labour Statistics showed. This eased market fears over a potential economic recession.

Base metals market performance – 5 August

SHFE copper gained 1.76%, aluminium jumped 0.46%, lead rose 0.63%, while zinc fell 0.33%.

LME 3-month copper gained by 1.85%, aluminium rose 0.54%, lead inched up 1.22%, zinc climbed 1.10%, while nickel remained almost stable.

MCX aluminium rose 0.94%, lead rose 1.17%, zinc went up by 0.51% and copper rose by 1.53% d-o-d on 5 August.

Stock levels volatile

LME warehouse stocks of base metals kept fluctuating on d-o-d basis. Copper and aluminum stocks fell by up to 1% yesterday, while zinc stocks rose 6%. However, nickel and lead stocks remained stable.

Oil prices improve 

Brent oil futures rose to $95.54 per barrel and crude oil WTI futures increased to $89.61 per barrel at the time of reporting.

Currency exchange

The Indian rupee was at 79.54 against the US dollar. The dollar index, which gauges the value of the dollar in relation to a basket of six different currencies, hovered around $106 at the time of reporting.