Most base metals close higher

 

 

At the PM kerb close, LME three month copper traded at USD 8,495 tonne up 2.0% on the day while aluminum was 1.6% higher at USD 2,240 per tonne. The majority of upward progress was made late in the LME session, once investors had time to digest a better than expected US nonfarm payroll reading.

 

 

Mr Rob Montefusco senior commodities broker at Sucden Financial said that "The payroll reading bodes well for base metals, particularly coming after the weaker Chinese inflation figure, which suggested further stimulus and a possible reserve ratio cut again soon," 

 

 

Data released early Friday revealed Chinese inflation fell to 3.2% last month from 4.5% in January. As the world's top consumer of metals, economic indicators from China tend to be particularly closely eyed for demand signals.

 

 

Base metal markets appeared to shrug off news of a Greek sovereign debt rating downgrade by Fitch Ratings Friday which cut Greece's rating to restricted default from C.

 

 

Last week, Moody's Investors Service downgraded Greece's rating to C its lowest possible rating short of default. Similarly, Standard & Poor's Ratings Service cut Greece's long term credit rating to selective default.

 

 

But while the mood of base metal investors was buoyant heading into the weekend, market participants will be keeping a close eye on Saturday's trade balance data from China.