SHANGHAI, Nov. 10 (SMM) – LME lead prices overnight fluctuated between USD 2,020-2,030/mt after opening at USD 2030/mt. During European trading session, LCH.Clearnet raised initial margin call on 7- to 10-year Italian government bond by 5 percentage points to 11.65%, leading to a surge in yield of the bond and making the already instable politics in Italy even worse. As a consequence, LME lead prices plunged and finally closed at USD 1,977/mt, down USD 53/mt, with a drop as much as 2.6%. Debt issues and political chaos in Greece and Italy now become the leading factors for basic trends of metals prices. LME lead prices should repeatedly test 30-day moving average today.
The US dollar index rose significantly to touch 78, and closed at 77.98.
On Thursday, SHFE lead prices should move at RMB 15,000-15,400/mt due to slump in LME lead prices, and domestic spot lead prices should drop slightly from a day earlier, with deals expected between RMB 15,000-15,300/mt .