RBC: LME Base Metals On Defensive; All Below 30-Day Moving Averages

All six base metals traded on the London Metal Exchange are down by more than 1.5% so far Monday, including a 3.3% slide in tin so far. “There has been little in the way of positive press since Friday, and as such, markets have started the week as they finished the last—with a decided air of risk aversion,” says RBC Capital Markets. There are reports that up to six Spanish regions may need bailouts and the German magazine Der Spiegel quoted unidentified European Union officials as saying that the International Monetary Fund could stop aid payments to Greece.  An adviser to the People’s Bank of China says Chinese economic growth may slow to 7.4% in the third quarter, and Brazil’s government lowered its 2012 growth estimate to 3% from 4.5%. “Copper and lead have joined the others and have now traded down through their 30-day moving average, which has attracted technical selling,” RBC says. AS of 9:15 a.m. EDT, copper was $164 lower at $7,381 a metric ton, while aluminum was down $29.25 to $1,862.75.


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