Base metals close mostly higher on LME

Metal Recycling News  |  2013-03-08 05:15:12   |   By

The European Central Bank (ECB) rate decision strengthened the Euro which consequently led to base metals mostly closing higher on the London Metal Exchange (LME).

LONDON (Scrap Monster) :  The European Central Bank (ECB) rate decision strengthened the Euro which consequently led to base metals mostly closing higher on the London Metal Exchange (LME).

At the close of open-outcry trading on Thursday, LME three-month copper was 1.0 per cent higher on the day at $US7, 765 a metric ton.

Lead marginally down during the initial trades showed strong recovery during the course of the day, closing 0.9 per cent higher at $US2, 210/ton.

The base metal pack seems to take cues from the common currency to determine its direction throughout the trading session.

The euro rose against the US dollar on Thursday to its strongest level this month after the ECB stuck with its inflation forecast, holding interest rates as they were and sounding less pessimistic than expected, despite trimming its growth forecasts.

The ECB left its inflation forecasts broadly unchanged for 2013 and 2014 at 1.6 per cent and 1.3 per cent, respectively.

US jobless claims fell to 340,000 in the week ended March 2, down 7,000 from the previous week. US nonfarm payrolls figure is expected to be released Friday, which may determine the future direction of movement of the base metals.