SHANGHAI, Mar. 25 (SMM) -- On Wednesday, the US stock markets were depressed by a series of negative news: Fitch Ratings cut Portugal's credit rating, and the European Union will decide whether or not provide aid package for Greece on its two-day summit starting today. The US new home sales declined to a record low, and the growth in durable goods orders in February was lower than market expectation. Meanwhile, the mortgage loan market index has fallen for two consecutive weeks. As a result, the US stocks slumped from a record high within 18 months, stimulating the US dollar to strengthen, and the US dollar index advanced to 81.92 in response, almost hitting the record high of 82 set in May 2009. Metal prices declined as a result, and LME aluminum prices were restricted to 20-day moving average on the ring trading and KERB trading, and dipped to USD 2,215/mt, and finally closed at USD 2,224/mt, down 1.42%. LME aluminum prices have fallen below USD 2,200/mt on the electronic trading, with prices hitting the USD 2,190/mt mark and touching the 30-day moving average line.
If the US dollar index moves around 82, LME aluminum prices will also move around USD 2,200/mt on the electronic trading today during Asian trading period. SHFE aluminum prices faced heavier resistance from moving averages, and SHFE three-month aluminum contract prices will have trouble in testing the support level of USD 16,500/mt.
To contact the writer on this report: jiangning@smm.cn
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