Base Metals Preview: Copper Extends Losing Spree

Worries related to global trade war yet again hurt the metals complex. DOW fell as The Trump administration said tariffs on steel and aluminum imports from EU, Canada and Mexico will take effect at midnight Thursday. COMEX Copper futures witnessed a sharp recovery after testing near three week low on bargain buying and weakness in US dollar but are failing to hold onto thie recovery. The metal currently quotes at $ 3.06 per pound- down marginally on the day. MCX Copper closed at Rs 456.75 per kg, down 0.46% on the day.

Economic data was good. A report released by MNI Indicators on Thursday showed business activity in the Chicago-area gained significant traction in the month of May. MNI Indicators said its Chicago business barometer jumped to 62.7 in May from 57.6 in April, with a reading above 50 indicating growth. Eurozone unemployment rate fell to 8.5% in April from 8.6% in March, Eurostat reported Thursday. This was the lowest since December 2008. Nonetheless, the rate was slightly above the expected 8.4%. Data showed that unemployment totaled 13.88 million in April, down by 56,000 from the previous month. The overall unemployment rate in EU28 held steady at 7.1% in April, the lowest since September 2008.