SHANGHAI, Sept. 12 (SMM) – On last Friday’s night trading, SHFE 1610 lead opened lower at RMB 14,060/mt and then rebounded to RMB 14,180/mt before fluctuating at RMB 14,150/mt. The contract finally ended at RMB 14,120/mt.
On Monday, SHFE 1610 lead started at RMB 14,075/mt and then declined to RMB 13,930/mt. The contract remained downward momentum at the tail of trading and ended at RMB 13,835/mt, down RMB 290/mt or 2.05%. Trading volumes rose 5,386 to 12,850 lots and positions decreased 1,014 to 17,786.
US stocks and treasury bonds hit the largest decline last Friday since UK’s EU referendum and European stocks dropped across the board. The VIX, a trademarked ticker symbol for the CBOE Volatility Index, surged by 40%. Base metals prices in China reduced. SHFE 1610 lead dropped below the 40-day moving average with negative technical indicators.
SHEF 1610 lead should remain downward trend in a short term and may test support at RMB 13,800/mt.