MTECHTIPS:- Base Metals Preview: Copper And Nickel Lead Losses On MCX
Base metals dropped on MCX in the morning moves amid a poor outlook for the globaleconomy and a mixed to weak undertone in Asian stock markets. Global engineering andenergy construction equipment major Caterpillar offered a downbeat assessment of the global economy yesterday. Alongside its second-quarter results, Caterpillar, noted thatwhile economic conditions in the United States are modestly positive, the global economyremains relatively stagnant. Many of the key industries we serve remain weak, and we haven’t seen sustained signs of improvement. Continuing economic weakness in China and Brazil, aswell as uncertainty in the eurozone and over Greece, haven’t helped confidence. Theco mpany cut its full-year sales forecast to $49 bn from an earlier prediction of $50 bn. This is capping global copper prices and COMEX Copper futures tumbled to a fresh five year low today. The counter is quoting at $2.3660 per pound, down 0.82% on the day. MCX Copper futures are trading at Rs 336.50 per kg, down 0.62% on the day as a drop under Rs 350 has hurt the sentiments severely in last couple of sessions. Nickel has plummeted around 1% at Rs 719.80 per kg while Lead is down 0.36% at Rs 109.50 per kg. Aluminium is up 0.24% at Rs 102.40 per kg while Zinc is almost unchanged at Rs 126.30 per kg.