praveen
19-03-2008, 07:41 AM
Industrial metals bounced back on Tuesday after the previous session’s sharp fall, but investors will pay close attention to a meeting of the US Federal Reserve scheduled for later in the day, analysts said.
Copper for delivery in three months on the London Metal Exchange rose more than 1% from Monday’s close to end the official open outcry session at $8,160 per tonne. “The rebound is just because of Monday’s strong sell-off,” Lehman Brothers analyst Michael Widmer said.
The Fed is widely expected to cut interest rates by 1 percentage point to 2% at a policy meeting around 1815 GMT on Tuesday, and some investors are looking for an even deeper cut.
A weaker dollar generally supports commodities, which are priced in the US currency.
Aluminium was up $35 at $2,980 per tonne, and zinc was $13 higher at $2,492 per tonne. Chinese aluminium giant Chinalco said it expected prices to stabilise this year at around 20,000 yuan a tonne in China and at about $3,000 a tonne on the LME. Nickel was $850 higher at $30,250 per tonne, tin was up $550 at $20,750 per tonne and lead was down $38 at $2,862 per tonne.
Copper for delivery in three months on the London Metal Exchange rose more than 1% from Monday’s close to end the official open outcry session at $8,160 per tonne. “The rebound is just because of Monday’s strong sell-off,” Lehman Brothers analyst Michael Widmer said.
The Fed is widely expected to cut interest rates by 1 percentage point to 2% at a policy meeting around 1815 GMT on Tuesday, and some investors are looking for an even deeper cut.
A weaker dollar generally supports commodities, which are priced in the US currency.
Aluminium was up $35 at $2,980 per tonne, and zinc was $13 higher at $2,492 per tonne. Chinese aluminium giant Chinalco said it expected prices to stabilise this year at around 20,000 yuan a tonne in China and at about $3,000 a tonne on the LME. Nickel was $850 higher at $30,250 per tonne, tin was up $550 at $20,750 per tonne and lead was down $38 at $2,862 per tonne.