Zinc settled down -2.7% at 140.40 as a firmer US dollar reduced the purchasing power of non-US consumers. Chinese Premier Li Keqiang confirmed China will not push any additional stimuli for the remainder of this year, triggering investor concerns over China's demand. Market considered it a sign that the Chinese government will not introduce further stimulus for the foreseeable future, and worried China may fail to achieve the 7.5% growth target this year. In addition, expectation of an early interest rate by the Fed caused US shares to slump.

Pressure also seen in the wake of disappointing trade data from China which ignited concerns of slower Chinese growth. China's trade surplus hit a record USD 49.83 billion in August, up 77.8% YoY, but imports fell 2.4%, indicating that the Chinese economy lacked impetus to grow amid sluggish domestic demand. Meanwhile, the Chinese Premier Li Keqiang said late on Tuesday that the government will not unveil aggressive stimulus measures and will largely maintain a prudent monetary policy. He added that the government considers the GDP growth above and below the 7.5% target acceptable, fueling pessimism over China's pro-growth measures.

As a result, base metals prices dropped across the board. Bank of England Governor Mark Carney said that the BOE may start to raise interest rates next spring and the timing of this move will be based largely on the wage growth. Technically market is under long liquidation as market has witnessed drop in open interest by -27% to settled at 4520 while prices down -3.9 rupee, now Zinc is getting support at 138.6 and below same could see a test of
136.8 level, And resistance is now likely to be seen at 143.1, a move above could see prices testing 145.8.

Trading Ideas:

Zinc trading range for the day is 136.8-145.8.

Zinc settled down as a firmer US dollar reduced the purchasing power of non-US consumers.

Chinese Premier Li Keqiang confirmed China will not push any additional stimuli for the remainder of this year, triggering investor concerns over demand.

China's trade surplus hit a record USD 49.83 billion in August, up 77.8% YoY, but imports fell 2.4%.