SHANGHAI, Jun. 13 (SMM) – Market sentiment over the US growth improved after the improvement in non-farm payrolls and the S&P’s decision to keep its long-term credit unchanged at AA+, and to upgrade the outlook from negative to stable. Meanwhile, market expectations over the scaling back of quantitative easing measures also increased. LME lead registered an interday drop of 1.65%. The market was further hit by the release of disappointing CPI and PPI results for May in China, Japanese fresh monetary policies, the plunging European stock markets, and Germans’ challenge to European Central Bank's bond-buying plans. The US dollar index meanwhile fell below 81, but gave little support to LME lead prices, which totally lost USD 35/mt since last Friday, surrendering all gains since late May. LME lead market overnight closed at USD 2,121.8/mt. Transactions were down 2,758 lots to 4,978 lots, while positions were up 93 lots to 125,000 lots. LME lead inventories were down 2,225 mt to 200,300 mt.
SMM Lead Market Morning Review (2013-6-13)