Base metals are trading lower on MCX today amid a tepid undertone in the global metals prices. COMEX Copper slipped today after hitting a ten-day high in last session. The red metal had dropped to a two month low last week before edging up. US stocks jumped on Friday after the US the Labor Department reported payrolls in the US rose less than projected in January as retailers cut back after the holidays and government hiring fell. However, the global equities have failed to hold onto this momentum and are mostly trading in a dull manner in Asia today. COMEX Copper is quoting at $3.2070, down half a percent on the day. MCX Copper quotes at Rs 442.95, down Rs 1.55 per kg or 0.35% on the day. In other base metals on MCX, Aluminum is down 0.10% at Rs 104.30 per kg and Zinc is down 0.24% at Rs 125.30 per kg. Nickel is down 0.70% at Rs 877.50 per kg.
Growth is set to pick up in most large developed economies during the first half of 2014 and to stabilize in most large developing economies, with the exception of India, according to leading indicators published Monday by the OECD. The leading indicators suggest that a rebalancing of global economic growth is under way, with large developing economies playing less of a key role than they did in the years following the onset of financial crisis of 2008.
But with growth in developed economies still modest and vulnerable to setbacks, the stabilization of growth rates at relatively weak levels in large developing countries has led to concerns about the strength of the global economy as a whole this year. US Stocks were seen lagging yesterday and ended little changed after the spurt on Friday as the OECD presented a cautious assessment of growth in the emerging economy.
There is some sense of cautiousness in the global markets as investors are watching closely for any signal from new Federal Reserve Chairwoman Janet Yellen that she’s contemplating policy changes even as economists think such a signal is highly unlikely.
The House Financial Services Committee will release her prepared comments on the Fed’s semi-annual policy outlook tonight. On Thursday, Yellen will face the Senate Banking Committee.
The economic data out last week was largely supportive for copper. The first week of every month brings us a whole set of Manufacturing and Service sectors Purchasing Managers Indices (PMI) data and the latest releases have mostly been in tune with the idea that the world economy is expanding at a decent pace. The US manufacturing PMI has slipped but the critical services sector in the country is doing well. The US services PMI has bounced in January from two consecutive declines and the companies in services industry are reporting better business conditions and adding jobs.