SMM Morning Review - 2011/8/16 Lead Market

SHANGHAI, Aug. 16 (SMM) -- LME lead prices moved around USD 2,400/mt after opening lower, and later fell back to USD 2,350/mt, with support found at the 5-day moving average. During European and the US trading hours, stocks opened significantly higher supported by news that Google will acquire Motorola Mobility Holdings. In addition, the US Federal Reserve Member Lockhart gave a hint at the possibility of a third round of quantitative easing (QE3), which weighed down US dollar index. As a result, LME lead prices fluctuated higher to USD 2,415/mt, and finally closed at USD 2,401/mt, up USD 28/mt. SMM predicts LME lead prices may move between USD 2,360-2,430/mt on Tuesday.

In neighboring markets, the US dollar index fell below 74, and finally closed at 73.892.

Domestic spot lead is expected to be traded between RMB 16,250-16,400/mt on Tuesday.