Global slowdown keeps Zinc in bear market
07/01/2015 09:34
Zinc futures ended lower in the domestic market on Tuesday as investors and speculators exited positions in the industrial metal as a slump in oil prices signaled a slowdown in the global economy, darkening the demand outlook for base metals.
A combined gauge of manufacturing and services in the Euro area expanded at a slower pace in December, signaling a faltering recovery in the 18-member economy, clouding the demand outlook for industrial metals. The Euro area composite PMI fell to 51.1 in December from 51.4 in November, with a reading above 50 signaling expansion.
However, China’s services activity gauge hit a three-month high of 53.4 in December from 53 in the previous month, easing concerns over a slowdown in the world’s second biggest economy, supporting Zinc.
At the MCX, Zinc futures for January 2015 contract closed at Rs 137.45 per 1 kg, down by 0.54 per cent after opening at Rs 138.2, against the previous closing price of Rs 138.2. It touched the intra-day low of Rs 137.30 till the closing.
07/01/2015 09:34
Zinc futures ended lower in the domestic market on Tuesday as investors and speculators exited positions in the industrial metal as a slump in oil prices signaled a slowdown in the global economy, darkening the demand outlook for base metals.
A combined gauge of manufacturing and services in the Euro area expanded at a slower pace in December, signaling a faltering recovery in the 18-member economy, clouding the demand outlook for industrial metals. The Euro area composite PMI fell to 51.1 in December from 51.4 in November, with a reading above 50 signaling expansion.
However, China’s services activity gauge hit a three-month high of 53.4 in December from 53 in the previous month, easing concerns over a slowdown in the world’s second biggest economy, supporting Zinc.
At the MCX, Zinc futures for January 2015 contract closed at Rs 137.45 per 1 kg, down by 0.54 per cent after opening at Rs 138.2, against the previous closing price of Rs 138.2. It touched the intra-day low of Rs 137.30 till the closing.
