SHANGHAI, Aug. 30 (SMM) -- Last Friday, Federal Reserve Chairman Ben S. Bernanke said that the committee is prepared to provide additional monetary accommodation through unconventional measures if it proves necessary, including the U.S. central bank's purchases of longer-term securities. Meanwhile, the better-than-expected US GDP in 2Q and positive US corporate earning reports gave a boost to financial markets, and bullish investor sentiment helped push up global equities markets, with several major indexes posting a growth of over 1.6% Friday night, and with Dow Jones Industrial Average closing at 10,150.65 points, returning to above 10,000 points again. The US dollar weakened in response, with the index ending at 82.74, and LME base metals prices closed gains as a result.
LME aluminum prices opened at USD 2,030/mt, and later dipped to as low as USD 2,010/mt. At the tail of trading, LME aluminum prices soared to USD 2,076/mt, and finally closed at USD 2,058/mt, up USD 25/mt compared with the previous trading day, with a gain of 1.2%. Total trading volumes were 134,202 lots, and total positions were down 4,174 lots. LME aluminum inventories declined by 3,200 mt to 4,445,600 mt.
SHFE copper and zinc prices opened with significant gains today, but SHFE 1011 aluminum contract prices only opened slightly higher at the 10-day moving average. Special attention should be paid to whether or not the Shanghai Stock Exchange Composite Index trends can push up SHFE aluminum prices continuously, with SHFE 1011 aluminum contract prices expected to move between RMB 15,300-15,500/mt today.
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