Zinc settled -0.5% down at 109.90 after climbing from the day's low but still market look weak as a fragile global economy and Europe's lingering debt crisis curbed buying interest, with a week-long public holiday in top consumer China keeping trading volumes extremely thin. China's official purchasing managers' index for the services sector fell to 53.7 in September from 56.3 in August, weighed by lacklustre new orders, a survey from the National Bureau of Statistics showed. Key for markets this week is the US nonfarm payrolls data for September due on Friday. The Fed in September began a bid to buy $40 billion in mortgage-backed securities every month until the jobs outlook improved substantially and Friday's payrolls data will be the initial test of whether that is paying off. Spanish PM said a request for European aid was not imminent following a report the debt-saddled country could apply for help as soon as this weekend. Meanwhile pressure seen on zinc as from the supply side it has been reported that Lady Loretta will starts zinc production ahead of schedule. The miner said on Tuesday that first deliveries of zinc/lead/silver ore trucked into Mount Isa for processing were expected later this month. For today's session market is looking to take support at 108.3, a break below could see a test of 106.7 and where as resistance is now likely to be seen at 111.2, a move above could see prices testing 112.4.

Trading Ideas:

Zinc trading range for the day is 106.7-112.4.

Zinc drops but still market look weak as a fragile global economy and Europe's lingering debt crisis curbed buying interest

China's zinc concentrate imports jump by 51% in August

Moody’s said in August its review on Spain’s Baa3 rating would continue through the end of September.