Weekly Base Metal Tips Of 23.02.2015

Copper futures closed lower in the domestic market on Thursday as investors and speculators stayed cautious over booking fresh positions in the industrial metal as demand from China, the world’s biggest metals consumer, remained weak as markets and businesses remained closed due to the Lunar New Year holiday. However, an uptick in Euro area consumer confidence signaled a recovery in the 19-member economy, lifting the demand outlook for industrial metals, supporting copper. The gauge measuring Euro area consumer confidence rose by 1.8 points to -6.7 in February. Copper futures may rise today as a fall in US jobless claims signaled an improving demand outlook in the US.

At the MCX Copper futures for February 2015 contract closed at Rs 359.45 per 1 kg, down by 0.01 percent after opening at Rs 358, against the previous closing price of Rs 359.5. It touched the intra-day high of Rs 355.2 till the closing.

Crude Oil futures plunged in the domestic market on Thursday as investors and speculators exited positions in the energy commodity after US supplies rose for a sixth straight week to a record last week, exasperating fears of a global supply glut. Crude stockpiles at Cushing, Oklahoma, the biggest US oil storage hub climbed by 3.66 million barrels to 46.26 million barrels last week. Manufacturing activity in the Philadelphia region expanded at the weakest pace in a year this month while a gain in US leading index decelerated in January, signaling a slowdown in the world’s biggest economy, dimming the demand outlook for the fuel. Investors cast aside data which showed a drop in the number of applications seeking jobless benefits last week, signaling an improving labour market recovery in the US. Unemployment claims fell by 21,000 to 283,000 in the week ended February 14, 2015. Crude oil futures may extend losses today as ballooning US supplies aggravate a global surplus.

At the MCX, Crude oil futures, for the March 2015 contract, closed at Rs 3,246 per barrel, down by 2 per cent, after opening at Rs 3,300, against the previous close price of Rs 3,313. It touched an intraday low of Rs 3,128 till the closing.