Zinc settled down -0.63% at 141.6 on profit booking after data showed euro zone July CCI was disappointing. The IMF lowered its forecast for US economic growth to 1.7%, depressing market confidence.  But falling LME zinc inventories did give support to zinc prices. Chinese construction company Huatong Road & Bridge Group managed to repaid both the interest and principal on a short-term bond that matured Wednesday, averting another corporate bond default in China. In the US, several listed companies reported excellent results, allowing US stocks to extend gains. However, the International Monetary Fund slashed US growth forecast from 2% to 1.7%. In addition, the euro zone consumer confidence index for July fell short of forecast, causing the euro to weaken. The Chinese Premier Li Keqiang stated at a State Council executive meeting that China will maintain a stable monetary policy and ensure a reasonable growth in total credits to prop up the real economy. Some investors interpreted the statement as a sign of continuously easy monetary policy, which will help boost stock and commodity markets for recent trading days. LME zinc prices opened at USD 2,366.5/mt overnight, and touched a three-year high of USD 2,376/mt, then fluctuated between RMB 2,350-2,375/mt, and closing at USD 2,365/mt, down USD 7.5/mt or 0.32%. Trading volumes decreased by 5,972 to 8979 lots, and total positions increased by 3,459 to 327,084 lots. LME zinc inventories fell by 450 to 655,825 mt.  Technically market is under long liquidation as market has witnessed drop in open interest by -12.6% to settled at 5944 while prices down -0.9 rupee, now Zinc is getting support at 140.7 and below same could see a test of 139.9 level, And resistance is now likely to be seen at 142.6, a move above could see prices testing 143.7.

Trading Ideas:

Zinc trading range for the day is 139.9-143.7.

Zinc prices ended with losses on profit booking after data showed euro zone July CCI was disappointing.

IMF lowered its forecast for US economic growth to 1.7%, depressing market confidence.

Zinc daily stocks at Shanghai exchange came down by 552 tonnes.