Base metals prices show mixed trends

Base metals prices on all major exchanges witnessed mixed trends on 7 December, 2022.

LME's three-months copper contract edged up by 0.4%, nickel rose 7.4%, aluminium was down 0.9%, zinc rose by 0.9%, while lead decreased by 0.4%.

SHFE copper rose 0.46%, aluminium dropped 0.36%, lead lost 0.41%, and zinc advanced 0.22%.

Japan economy data

Japan's economy, the world's third-largest, shrank less than initially estimated in the third quarter, bolstering a view that it is slowly recovering from COVID-19 even as major export markets show signs of further weakening. The economy shrank at a 0.8% annual rate in July-September.

China's gold reserve rise

China reported an increase in its gold reserves for the first time in more than three years. The People's Bank of China raised its holdings by 32 tonnes (t) in November compared with the previous month, according to latest reports.

On the other hand, more US economic data will be released this week, including the weekly number of initial jobless claims, and producer price index (PPI). These data will have a significant impact on the Fed's decision to raise interest rates on 14 December.

LME stock levels down

Base metals stocks at LME-registered warehouses decreased by up to 1.7% d-o-d in the last session. However, copper stocks rose 2.4%.

Oil prices decline

Brent oil futures fell by 1.5% at $77.59 per barrel, while crude oil WTI futures moved down by 2.7% to $72.57 per barrel at the time of reporting.

Dollar index

The dollar index, which gauges the value of the dollar in a basket of six different currencies, hovered around 105.23, up marginally by 0.12% against the last session.

The rupee was recorded at 82.27 against the US dollar, appreciating 0.22 paise against the last closing.