Base Metal Outlook : Evening Report

Base metal prices are trading higher with average gains of half to two percent. Nickel continues to remain to the top gainer as it trades with gain of close to two percent. Stronger equity markets along with lower dollar index are supporting prices to trade higher. Most of the Asian equity markets closed higher and European equity markets also continue to trade higher as sovereign concerns eased. Portugal government successfully raised Euro 1.25 billion, though at a higher yield. This was crucial as speculation was increasing that the country could eventually be forced into seek bailout. Equity markets of peripheral nations like Portugal and Spain have rallied anywhere between two to three percent. In the evening, import price index is expected to indicate increase in prices, though at a moderate pace. Overall, we expect base metal prices to continue to remain on the higher side.