Zinc yesterday traded with the negative node and settled -0.68% down at 102.85 recovered a little as boost to sentiment from talks that China may soon inject more liquidity to boost its economy But persistent worries in Europe and poor European stock markets limited gains and kept base metal in negative territory. Bank downgrades, poor global economic data and Eurozone concerns hit the complex badly last week. Some support came from a report in the China Securities Journal today that China's central bank could inject liquidity "soon" either by a cut to banks' reserve requirement ratio or through open market operations. It injected 55 billion Yuan into the market last week, its largest net injection since April, according to news reports. In the Eurozone, Spain has formally requested a bailout for its banks this morning, according to various reports, although the full details have yet to be announced. European leaders are to discuss specific steps towards a cross-border banking union, closer fiscal integration and the possibility of a debt redemption fund. They agreed last week on a 130-billion-euro plan to boost growth but little progress was made on a more flexible use of Europe's rescue funds. For today's session market is looking to take support at 102.4, a break below could see a test of 101.9 and whereas resistance is now likely to be seen at 103.3, a move above could see prices testing 103.8.
Zinc trading range for the day is 101.92-103.82.
Zinc inched down as poor performance, of wider financial markets continue to be barraged
Base metals down on a combination of poor data from China, Europe and the US.
South Korea has bought 500tns of zinc via a tender from Korea Zinc Inc at $159 per tonne.
Warehouse stock for Zinc at LME was at 992850mt that is down by -175mt.
BUY ZINC JUNE ABV 103.00 SL 102.40 TGT 103.60-104.20-104.90. MCX
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