SHANGHAI, Mar. 8 (SMM) -- On Monday, Moody’s Investors Service cut Greece’s credit rating by three notches, down from Ba1 to B1, and placed the country’s credit rating on review for possible further cut, again triggering market concerns over the European sovereign debt crisis. As a result, the euro lost previous gains last night, and the US dollar index strengthened in response, and closed higher at 76.51, up 0.11 or 0.14% compared with the previous trading day.
The mounting unrest in Libya spurred investors’ concerns over market economy, and investors sold off metals and rushed for safe-haven assets. In this context, LME base metals prices tumbled last night, with LME aluminum prices opening at USD 2,602/mt in the morning session. Later, the emerging pessimistic sentiment dampened market confidence, and LME aluminum prices finally ended at an intraday low of USD 2,557/mt, down USD 43/mt compared with the previous trading day, or down 1.65%. Disruption of spot aluminum supplies in Middle East helped support LME aluminum prices to fall slower than other base metals prices, and total positions fell by 188 lots to 709,378 lots.
Negatively affected by falling LME aluminum prices, SHFE 1105 aluminum contract prices opened significantly lower at RMB 16,735/mt today, with some support reported at RMB 16,700/mt. SMM predicts SHFE 1105 aluminum contract prices will fluctuate between RMB 16,700-16,800/mt today due to weak market fundamentals.
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