SMM Lead Market Morning Review (2013-11-27)

SHANGHAI, Nov. 27 (SMM) – LME lead price overnight opened at USD 2,090/mt and consolidated narrowly below the opening mark in Asian trading hours, due to the lack of major news. Buoyed by a resurgent euro and encouraging US housing activity, LME lead edged up to close USD 7/mt or 0.34% higher at USD 2,095.5/mt in European and the US trading session. LME lead outperformed other base metals to end with gains, but failed to push through the USD 2,100/mt mark,on soft movements of other base metals. LME lead is expected to consolidate weakly on Wednesday, as capital is flowing out of the market ahead of the US Thanksgiving holiday. 

The US October building permits surged to 1.034 million units on an annualized basis, the highest level since June 2008, while the S&P/Case-Shiller home price index rose at an annualized rate of 13.3% in September from a year earlier, above forecasts for an increase of 13% and August’s 12.8%. However, the US consumer confidence dropped to a seven-month low of 70.4 in November, showing that Americans are concerned over future job and earning prospects. As a result, these economic data weighed down on metals market.