SHANGHAI, Jun. 29 (SMM) – LME lead opened at USD 1,800.5/mt during Asian trading hours and fell to USD 1,785/mt, to find support at the 5-day moving average. LME lead hovered between USD 1,780-1,790/mt during European and US trading hours, to close down USD 16.5/mt at USD 1,780.5/mt. Trading volumes fell 279 to 2,911 lots while positions increased 2,178 to 140,603. Inventories for LME lead were up 3,925 to 176,450.

The PBOC decided to lower deposit reserve ratio at targeted financial institutions effective June 28 to support economy and also lowered lending and deposit interest rate to reduce financing costs at enterprises. One-year lending interest rate at financial institutions was dropped by 0.25 percentage point to 4.85%, and interest rate for one-year deposit was lowered by 0.25 percentage point to 2%. This is the fourth interest rate cut and the third deposit reserve ratio cut by the PBOC since November 2014. This is expected to release RMB 470 billion in liquidity.

Escalating Greek crisis allowed the US dollar index to open high, weighing down base metals prices.

London gold and silver prices plunged nearly 1%, and crude oil prices plummeted 1.36%. LME base metals prices were mixed.

LME lead should fall to USD 1,750-1,790/mt today. SHFE 1508 lead may test RMB 12,950-13,100/mt with technical indicators pointing downwards and spot lead may move between RMB 13,250-13,400/mt.