SHANGHAI, Apr. 17 (SMM) – Overnight financial markets improved. Investors' pessimism relieved due to positive US real estate data and earnings reports, causing global stocks markets to close the day with gains. The euro against the US dollar index closed up 1.09%, touching a record high of 1.3200 since late February. The US dollar index weakened sharply, with daily declines of 0.69%, giving support to LME zinc prices to rebound. LME zinc price overnight opened at USD 1,867/mt, and dipped to USD 1,845/mt, but then strengthened, breaking through the 5-day and 10-day moving averages and USD 1,900/mt level, touching USD 1,906.3/mt, and finally closing at USD 1,904.3/mt, up USD 33.8/mt or 1.8%. Major economic data from Europe and US released yesterday was generally negative, and the IMF lowered its expectations of global economic growth for this year. With the lack of positive news, it is uncertain if LME zinc prices will extend increases today. Trading volumes decreased by 3,411 lots to 12,931 lots, and total positions decreased by 3,500 lots, to 273,000 lots. LME zinc inventories fell by 4,300 mt, to 1,127,175 mt.
LME zinc prices are expected to move between USD 1,880-1,910/mt today, and SHFE 1307 zinc contract prices should fluctuate between RMB 14,550-14,750/mt, with spot discounts between RMB 90-130/mt against SHFE 1306 zinc contract prices.