With a decline of 3.14 per cent, tin led the fall in base metals today, owing to worries the Chinese government might announce steps to curb the rise in property prices. The dollar’s gain, along with worries the US Federal Reserve might discontinue its bond-buying programme, also added to the fall in base metal prices.
Copper fell about two per cent to settle at $7,847.5 a tonne. Nalini Rao, senior research analyst with Angel Broking, said the metal was trading lower due to risk aversion resulting from worries the US Federal Reserve was likely to stop or reduce stimulus measures. A rise in London Metal Exchange copper inventories was another bearish factor on prices of the metal. Copper prices on the MCX traced the weakness in international prices, Rao said.
Fears of a further squeeze of funds also saw other base metal prices fall. Aluminium fell one per cent to $2,045. Lead, zinc and nickel fell 2.16 per cent, 2.34 per cent and 2.47 per cent, respectively. At close of the morning session on the London Metal Exchange, the three metals stood at $2,313, $2,086.5 and $16,775 a tonne, respectively.
European markets are trading on a bearish note, owing to unfavourable data from the Euro zone. US Index Futures and Asian shares declined. The global economic concerns led to risk aversion.