SMM Morning Review - 2010/3/18 Lead Market

SHANGHAI, Mar. 18 (SMM) -- The LME lead market overnight closed above USD 2,250/mt as the US PPI in February fell 0.6% from January levels, the largest decline since July 2009, giving strong support for the US Federal Reserve's decision to keep its interest rate unchanged near zero. Hence, investors risk appetite improved, with upward momentum available based on technical indicators. LME lead prices are expected to move between USD 2,220-2,320/mt.

In neighboring markets, the euro fell back after hitting a 5-week high against the US dollar, since German Chancellor's comments on the aid plan for Greece's debt issue weighed down market expectations over the resolution of the crisis. In this context, the US dollar closed at 79.748. Gold futures on the COMEX closed at USD 1,124.20 per ounce, down USD 1.70. Silver futures for May delivery ended at USD 17.523 per ounce, down 16.9 cents.

Domestic lead market is expected to trade between RMB 15,650-15,800/mt on Thursday. 

To contact the writer on this report: Sherryshi@smm.cn

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