Base metals prices on the London Metal Exchange (LME) and the Shanghai Futures Exchange (SHFE) showed a downward trend in the last trading day.
US Fed delivers another rate hike
The market showed negative sentiments as the dollar index set a new high of 111.63 after the Federal Reserve announced a 75 basis point rate hike yesterday.
There has been a rumour in the market that a fourth-straight 75 basis-point hike could be on the table for the next gathering in November, about a week before the US midterm elections.
Base metals market performance – 21 September
- SHFE copper lost 0.45%, aluminium slid 0.88%, lead added 0.13%, and zinc lost 0.53%.
- LME’s three-month copper futures were down 0.88%, nickel down 0.06%, aluminum down 1.92%, zinc decreased by 0.96%, and lead down by 2.29%.
- MCX aluminum was down by 1.50%, nickel increased by 1.07%, lead up 0.25%, copper down marginally 0.34% and zinc fell slightly 0.6% d-o-d.
Stock levels fluctuate
Most of the base metals stocks at LME-registered warehouses decreased by up to 3.36% d-o-d in the last session. However, copper stocks increased by 10% while nickel increased 2%.
Oil prices fall
Brent oil futures fell to $90 per barrel and crude oil WTI futures were down marginally by 0.40% at $83.38 per barrel at the time of reporting.
Currency exchange
The Indian rupee was trading at 80.72, depreciating 0.78 paise against the greenback at the time of reporting.
The dollar index, which gauges the value of the dollar in a basket of six different currencies, hovered at around 111.72, up by 0.98% against the last session, amid the Fed’s warning of undertaking bigger and faster rate hikes going ahead.
.jpg)
Leave a Reply