Zinc sank on weak PMI data

Note: This section contains information in English only.
Source: Dukascopy Bank SA

Base metals plunged on Wednesday amid weak manufacturing data releases across the globe. US manufacturing sector activity declined to 49.8 while experts predicted the PMI to approach 50.3. Meanwhile, euro-area PMI contracted to three-year low of 44 last month.

Aluminum dropped on bleak PMI data from the EU and US. Additionally, high China's aluminum output weakened the light metal further.

Copper tumbled after the Fed refrained from additional monetary stimulus measures. Stronger greenback also sent the red metal lower.

Nickel was the top-loser as market continues to remain in surplus. Moreover, global manufacturing activity contraction added pressure on the metal.

Zinc sank despite slightly lower inventories. However, dismal demand prospects continued to limit any gains of the industrial metal.

 

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