Base metals prices remain in negative territory

Base metal prices on all major exchange markets remained volatile on 14 December, 2022.

LME's three-months aluminium contract went down by 0.7%, zinc fell 2.4%, copper and nickel inched up by 0.3%, while lead decreased by 1.1%.

SHFE copper lost 0.33%, aluminium rose 0.03%, lead fell 0.1%, and zinc dropped 1.37%.

US Fed raises interest rate

The Federal Reserve raised interest rates by half a percentage point (0.50 basis points) after its two-day meeting on 14 December.

The Federal Reserve reinforced its inflation fight by raising its key interest rate for the seventh time this year, with the last four increases being a sizable 0.75 basis points each time. and signalling more hikes to come.

China's industrial production rises marginally

China's industrial production advanced 2.2% y-o-y in November, less than market estimates of a 3.6% increase and easing from a 5.0% gain in the previous month. This was the weakest growth in industrial production since May, amid rising COVID infections and strict curbs as well as a downturn in the property sector.

Among the sectors, output of manufacturing fell amid a decline in utilities, while mining activity accelerated. Within manufacturing, output expanded for oil and gas (7.2%), ferrous metal smelting (9.4%), non-ferrous metal smelting (9.4%), automotive (4.9%), and electricity (-1.0%), as per reports.

China's retail trade declines y-o-y in Nov

China's retail trade declined by 5.9% y-o-y in November, faster than a 0.5% fall in the prior month and worse than market expectations of a 3.7% drop. This was the second straight month of decrease in retail trade and the steepest since May, as consumption deteriorated due to the impact of a new wave of COVID infections and ongoing restrictions.

LME stock levels mixed

Base metals stocks at LME-registered warehouses increased by up to 4.5% in the last session. However, aluminum and zinc stocks declined by up to 1.4% and lead was stable.

Oil price rises

Brent oil futures rose by 1.30% at $82 per barrel, while crude oil WTI futures went up by 1% at $76.55 per barrel at the time of publishing.

Dollar index

The dollar index, which gauges the value of the dollar in a basket of six different currencies, hovered around 103.93, up marginally by 0.16% against the last session.

The rupee was recorded at 82.46 against the US dollar, largely stable against the previous closing.