SMM Morning Review - 2012/1/20 Lead Market

SHANGHAI, Jan. 20 (SMM) – The good results for Spanish and French government bond auctions on Thursday improved market sentiments and drove euro up. Accordingly, the US dollar index fell to around 80. In addition, since US initial jobless claims dived to almost a four-year-lowest, boosting the US stock markets, LME lead prices overnight rose to hit USD 2,187/mt, a new high since September 2011, after hovering around USD 2,160/mt, and finally closed at USD 2,080/mt, up USD 42/mt, an increase of 1.96%. LME lead prices are expected to move between USD 2,150-2,220/mt today.

The US dollar index fell and closed at 80.088, and COMEX silver closed at USD 30.509/oz, up 0.09%.

On Friday, SHFE lead prices may rise to move between RMB 15,900-16,200/mt. Domestic spot prices should be between RMB 15,800-16,000/mt, with discounts over the most active SHFE lead prices at RMB 100-200/mt.