Global purchasing managers indexes have offset one another and left base metals largely flat, says Barclays Capital. With the exception of another sell-off in tin, the base metals are near steady to slightly mixed. “Macro news flow has ultimately been neutral, with the improving Chinese PMI offset by the continued weakness in the euro-zone PMI,” Barclays says. The HSBC July “flash” PMI for China jumped to a five-month high of 49.5, up from 48.2 in June. Still, base metals were not able to benefit much due to ongoing worries about the eurozone debt crisis and a weaker-than-forecast eurozone PMI, with Markit’s Eurozone Composite PMI holing at 46.4, the sixth straight reading below the 50 mark that separates economic growth from contraction. “Our economists have opined that it is a very weak reading and suggest that euro-area GDP has continued to contract at the start of Q3, implying downside risk to their GDP forecast (which is unchanged after a projected 0.2% q/q decline in Q2),” Barclays says. As of 8:44 a.m. EDT, LME copper was $9.25 higher at $7,410.25 per metric ton while aluminum was $5.25 softer at $1,872.75. Nickel was also modestly higher while zinc and lead eased slightly.
No comments:
Post a Comment