MCX Copper Updates

MCX Copper futures are trading on a weak note following the frail outing for world equities and a sell off in the LME copper futures as global economic worries stayed in focus and the US dollar maintained its firm tone. The anti austerity protests turned ugaly in Greece and Spain and the Spanish 10-year Government bond yield jumped back over 6% on news that Catalonia wants to leave Spain. The LME Copper is down $93 or 1.10% to trade at $8161 per tonne right now.

The Spanish worries hit the stock markets in Europe hard and the major indices are down around 1.5-2%. Spanish stocks plummeted by 3.40% on the Catalonia effect. The Euro tumbled to 1.2850- its two-week low level on these cues. Germany cleared the last legal hurdle to ratifying the euro zone's new bailout fund on Wednesday with a cabinet declaration that addresses concerns raised by the country's Constitutional Court, according to media reports. However this was already factored in the market and the Spanish worries seemed to be the sole factor driving the market forces today.

LME Copper fell through the 8200 levels and gave up bulk of its yesterday's gain. The metal is holding on quite tenuously amid weak cues from equities and could fall further if equities turn in further bearish. Reports of Chinese bonded copper inventories surging to record highs are not helping the red metal much either.

In other metals, Zinc, Lead and Nickel are down more than 1% each. MCX Copper futures for November yet again failed to hold on around Rs 445 levels and fell in the afternoon trade. The counter quotes at Rs 442.25, down Rs 2.75 or 0.62% on the day. There has been a sharp rise of 6.80% in the open interest for the counter indicating heavy short selling as a critical break under Rs 450 in last week turns the sentiments bearish.