Aluminum soared on US optimism

Source: Dukascopy Bank SA
© Scanpix/AFP
Industrial metals soared in the first trading session of 2013 as a deal on the US fiscal plan prompted a rally of risky assets. Base metals also were boosted by positive PMI releases from the US and Europe.  Final manufacturing PMI in the UK climbed from 49.2 to 51.4 in December while final US manufacturing PMI was revised upward from 53.2 to 54.0.

Aluminum surged on hopes for robust demand in the US after the country's lawmakers agreed on tax and spending reforms to avert so-called fiscal cliff. However, high aluminum production levels in China as well as record high inventories at LME continued to weight on the light metal.

Copper jumped after the US officials reached a fiscal deal. Positive PMI readings in the US and Europe also lifted the red metal. However, solid greenback coupled with elevated LME stockpiles capped gains of the red metal.

Nickel and Zinc followed common trend, advancing 2.94% and 4.26% amid optimism that US avoided potential recession. At the same time, bloated LME stocks continued to create heavy pressure on the metals.


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