Zinc settled down -0.1% at 142.75 held near its recent low on Tuesday after surveys showed factory growth in China and Europe slowed in August, raising bets that central bankers will have to loosen policy which has kept a floor under prices. Prices seen pressure as both China's official and HSBC's PMIs for August fell short of market expectations, distressing market sentiment. Eurozone economy was also sluggish that, when combined with the closure of US markets, kept investors cautious. The euro zone’s final manufacturing PMI dipped to a 13-month low of 50.7 in August. During the same period, the index in Germany and France sank to 11-month and 15-month lows, respectively. The manufacturing sectors in Italy shrank for the first time in 14 months. The UK’s manufacturing PMI dipped to 52.5 in August, a low last seen in June 2013, from 55.4. The significantly slower manufacturing growth highlighted more challenges caused by the geopolitical tensions. Investors should pay special attention to the Bank of England and European Central Bank’s interest rate decisions due for release later in the week. In addition, Germany’s final GDP contracted at a seasonally adjusted rate of 0.2% QoQ, dovetailing with expectations and the flash reading, down for the first time since 2012. The market will lack solid economic news today. Investors will remain reticent ahead of the release of US non-farm and ADP employment data.  Technically market is under fresh selling as market has witnessed gain in open interest by 4.17% to settled at 5966 while prices down -0.15 rupee, now Zinc is getting support at 142.2 and below same could see a test of 141.6 level, And resistance is now likely to be seen at 143.3, a move above could see prices testing 143.8.

Trading Ideas:

Zinc trading range for the day is 141.6-143.8.

Zinc prices dropped as both China's official and HSBC's PMIs for August fell short of market expectations, distressing market sentiment.

Eurozone economy was also sluggish that, when combined with the closure of US markets, kept investors cautious.

The euro zone’s final manufacturing PMI dipped to a 13-month low of 50.7 in August.