Zinc yesterday traded with the negative node and settled -0.15% down at 102.60 as pressure seen after the number of US jobless claims last week fell, but investors lost patience since European central bank did not take any action and optimism towards European debt crisis faded. As a result, LME zinc prices rolled back gains and finally closed at USD 1,859/mt, up USD 1/mt. The US and European markets digested China’s economic data and expected that China’s central bank will adopt measures to prop up economic growth. However, it is forecasted that the euro-zone economy to shrink 0.3% in 2012, from a previous expectation of 0.2% contraction, and to grow by 0.6% in 2013, down from an earlier forecast for 1% growth. European Central Bank Governing Council member Noyer said that the ECB will interfere in equity market to prevent it from sharp decline. In response, the euro inch down and dollar rebounded significantly. On Friday, China's imports data are expected to slip further, which will exert downward pressure on LME prices. For today's session market is looking to take support at 102.4, a break below could see a test of 102.2 and where as resistance is now likely to be seen at 102.9, a move above could see prices testing 103.1.
Zinc trading range for the day is 102.23-103.13.
Zinc ended with losses as after the release of China's CPI and PPI data.
ECB Governing Council member Noyer said that ECB will interfere in equity market to prevent it from sharp decline
China's imports data are expected to slip further, which will exert downward pressure on prices.
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