Aluminium settled -1.65% down at 109.20 as appetite for growth-linked assets weakened amid fears over the outlook for the global economy, while uncertainty over the timing of a Spanish bailout lingered. Also trading was low as reacting to currency movements in holiday-thinned trading, trading was much thinner than normal due to the absence of most Chinese participants for the Golden Week national holiday - markets there are set to reopen on October
8. The improvement in sentiment began yesterday after European Commissioner Olli Rehn said Spain would probably receive its pre-agreed banking bailout fund by November, which in turn provided the euro with some lift. In data released so far, Spanish unemployment increased by 79k in September, up from 38,200 in August, while the August European PPI came in at 0.9%, up from 0.4%. Meanwhile, Moody’s said it was still reviewing Spain's finances for a possible credit downgrade. Moody’s said in August its review on Spain’s Baa3 rating would continue through the end of September. A move below Baa3 would drop Spain’s debt into junk. Market participants now looked ahead to Friday’s crucial US non-farm payrolls data, which will allow investors to gauge the strength of the labor market. For today's session market is looking to take support at 108.6, a break below could see a test of 108 and where as resistance is now likely to be seen at 110.3, a move above could see prices testing 111.3.

Trading Ideas:

Aluminium trading range for the day is 108-111.3.

Aluminium settled down as appetite for growth-linked assets weakened amid fears over the outlook for the global economy

In Europe, dwindling new orders and faster layoffs marked a worsening decline for euro zone companies last month

The euro zone's economic woes accelerated last month and China's slowdown looked likely to extend to a seventh quarter