SHANGHAI, Jan. 9 (CBI China) -- Yesterday, along with the market concern about the U.S. non-farm employment data, the basic metals fell sharply again. From the metal declines in recent two days, the fundamentals instead of index fund buy order began to dominate the market.
But CBI believes the buy order of index fund is not good, from the purchase time of the two funds, AIG on January 9th -15th and S & P on January 8th -14th indicated the weight adjustment had not yet begun. In addition, vice president of JP Morgan Chase said yesterday, based the closing price on January 7th, the index fund weight adjustment would purchase USD 634 million of copper and USD 589 million of crude oil, at the same time sell gold and livestock futures. Although the nickel was not referred to, the purchase volume of nickel would not decline too much given the declines and purchase volume of copper recently. In addition, the nickel prices received strong support at USD 11,000/mt, the volume recovered too. The metal prices are expected to rebound in the near future and will fluctuate in the USD 11,000-13,000/mt range.
Copyright © 2008, CBI (Shanghai) Co., Ltd. All Rights Reserved.
None of this material may be used for any commercial or public use in any form or means, without the prior written consent of CBI China. For reproduction issue, please contact us by email: firstname.lastname@example.org or tel:86-21-51550040