By Leon Westgate As far as the base metals were concerned, they key event on Friday happened after the market closed. The US stock markets, after looking under pressure initially, picked up late on and eventually closed higher.
The recovery in US equities has helped to stop the rot, seeing much of the base metals complex open higher overnight. With the market still very uncertain, prices are trading sideways heading into the afternoon, with the metals appearing to be on-hold until the US markets open.
While Friday morning saw copper come under further heavy pressure, the metal dug its heels in pretty well, finding good support around $6,250 and building a base. Prices opened higher overnight, in reaction to the late rally and positive close on the Dow, however prices are drifting lower heading into the afternoon. Volumes are still very solid by normal standards, but are noticeably quieter than the levels seen over the past couple of days.
Trading platform that even a 5 year old can trade. Join nowZinc continues to look to copper for direction, with the metal also drifting lower into the early afternoon. Volumes have continued to be robust. Elsewhere, aluminium and nickel both appear to be looking to the dollar so far this morning, while lead appears to be caught in two minds as whether to track zinc or the dollar.
Tin is the only metal to have come under further heavy pressure this morning. The metal was sold initially overnight, before another bout of selling emerged as London opened. In other news, ITRI estimates that Tin demand was 307.2 kt in 2009, compared to around 340 kt in 2008.
Courtesy: Standard Bank
