SHANGHAI, Dec. 25 (SMM) – The LME market is closed today due to the Christmas holiday. As shorts will leave the market due to year-end settlement and profit-taking, investors should refrain from overt pessimistic.
SHFE base metals prices opened lower, but then entered an upward track. With the exception of SHFE nickel, other base metals found support from moving averages. SHFE base metals prices are expected to remain strong today.
The likelihood of an interest rate hike soon decreased as the People’s Bank of China (PBOC) executed Medium Term Lending Facility (MLF) two times this month. Net liquidity inject was only RMB 30 billion this week through open market operation, meaning liquidity is still moderate.