Base metals prices on all the major exchanges showed an upward trend on 8 November, 2022. The market closed mostly with gains as the continuously falling US dollar, which has again come down to INR 81 levels yesterday after reaching INR 83 a few days back, provided some momentum to prices.
Japan approves extra budget
Japan’s Cabinet approved an extra budget for the current fiscal year to spend 29.09 trillion yen ($199 billion) on an economic package on 8 November. The government is expected to submit the extra budget plan to parliament in mid-November to have it approved before the current session ends in early December.
On the other hand, domestic base metals (copper, zinc, aluminium and lead) prices remain almost at the same levels, with copper falling up to 1.4% due to low trading activities as the market in the northen region remained closed yesterday.
Base metals market performance – 8 November
- LME’s three-month copper contract rose by 2.5%, nickel rose by 2.6%, aluminium increased by 1.5%, zinc rose by 1.6%, and lead was up 0.9%.
- SHFE copper added 1.55%, aluminium gained 0.08%, lead added 0.69%, and zinc rose 0.34%.
LME stock levels continue to decline
All base metals stocks at LME-registered warehouses decreased by up to 1.7% d-o-d in the last session. However, nickel and lead stocks remained stable.
Oil prices fall d-o-d
Brent oil futures fell 2% to $94.99 per barrel, while crude oil WTI futures were down 2.5% at $88.43 per barrel.
Dollar index
The dollar index, which gauges the value of the dollar in a basket of six different currencies, hovered at around 109.64, almost stable against the last session.
The rupee was recorded at 81.50 against the US dollar, appreciating 0.60 paise over the last session.
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