Zinc yesterday traded with the negative node and settled -0.35% down at 100.6 tracking LME Zinc prices overnight were pushed up by the falling US dollar index.
Standard & Poor's downgraded long-term rating of European EFSF, so LME zinc prices fluctuated between USD 1,950-1,980/mt and finally closed at USD 1,955/mt, down USD 3.3/mt.
No solid news came from overseas market overnight. As market gradually digested news that Standard & Poor’s cut credit rating of nine European countries, market sentiment gradually stabilized.
Standard & Poor’s announced overnight to cut EFSF's credit rating from AAA to AA+, and set the outlook to negative.
It is expected that Standard & Poor’s will restore its outlook to AAA if EFSF’s finances improve.
The news exerted limited impact on market, with euro fluctuating narrowly and LME base metal prices closing mixed.
China will announce GDP data for Q4 2011 at 10:00 am on Tuesday. If the data only slips slightly than market expectation, it will exert limited impact on base metals.
Otherwise, it will strongly affect base metal movements.
In yesterday's trading session Zinc has touched the low of 100.3 after opening at 100.65, and finally settled at 100.6.
For today's session market is looking to take support at 100.2, a break below could see a test of 99.8 and where as resistance is now likely to be seen at 101.1, a move above could see prices testing 101.7.
Trading Ideas:
Zinc trading range is 99.8-101.7.
Zinc prices overnight were pushed up by the falling US dollar index and S&P's downgraded long-term rating of European EFSF
Standard & Poor's downgraded long-term rating of European EFSF
Zinc daily stocks at Shanghai exchange came up by 1401 tonnes
Courtesy: Kedia Commodities
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