SHANGHAI, Dec. 2 (SMM) -- Yesterday, China released that the Purchasing Managers Index (PMI) of manufacturing sector rose to 55.2% in November, up 0.5% from October levels. Meanwhile, the US construction spending in October and non-farm productivity in 3Q increased. As a result, market focus turned to positive economic data from China and the US from European debt crisis, and stock markets in Europe and the US soared last night, with Dow Jones Industrial Average closing at 11,255.78 points. The US dollar index fell sharply to 80.777, and LME base metals prices rebounded in response.
LME aluminum prices advanced steadily after opening at USD 2,310/mt, and touched a high of USD 2,355/mt, and finally closed at USD 2,340/mt, with prices standing above all moving averages, up USD 65/mt, or up nearly 3%. Positions fell slightly, but trading volumes increased significantly. LME aluminum inventories increased slightly to 4,288,750 mt.
SHFE 1102 aluminum contract prices opened higher at RMB 16,440/mt this morning, and trading sentiment improved slightly, but the persistent short position momentum will likely allow SHFE aluminum prices to undergo downward corrections after a high open, and SMM believes stronger momentum is still needed for SHFE 1102 aluminum contract prices to struggle at the 60-day moving average in the short term.
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