Base metals swung to losses on Wednesday on mixed news from the US and escalated worries over instability in Eurozone. US purchases of new homes attained almost two-year high last month; however, the Fed officials expressed concern that QE3 may be insufficient to boost economy. At the same time, massive protests in Spain sent the yield on 10-year sovereign bonds above 6%.
Aluminum retreated amid rising risk-aversion among investors after the borrowing costs of Spain surged. However, the light metal found slight support on positive headlines from the US property market.
Copper shed 1.87% on weak demand from Eurozone. Escalated worries over China's economic slowdown also pushed the red metal lower.
Nickel slumped as China's industrial profits remained low amid global financial instability.
Zinc was the top-loser on disappointing Fed officials' comments that the QE3 may fail to stimulate US economy.