Commodity Trading Tips for Zinc by Kedia Commodity

Ajay Kumar Kedia 2 July 2013

zinc Zinc yesterday settled up 1.09% at 110.90 as support seen after economic data released by the US and Europe overnight were positive. Improving global manufacturing alleviated worries over demand growth. Manufacturing PMI in China was mixed. Market say worries did ease some as China's manufacturing was not as bad as expected. Manufacturing activity across the euro zone contracted at its slowest pace in 16 months in June. The ISM announced the US manufacturing PMI was 50.9 in June, higher than the 50 estimate, strengthening confidence over the US economic recovery. Economic data from Europe and US overnight was positive and pushed up stocks and commodity prices. US June ISM manufacturing PMI was 50.9, higher than 49 in the previous month and the expected 50.5. Boosted by the recovering property market, US construction spending increased by 0.5%, to $874.9 billion in May, a record high in four years. June PMIs in all euro zone countries rose except for Germany, with the final euro zone PMI recording 48.8, a record high in 16 months. PMIs in Italy, Spain and Greece also climbed to a 2-year high. In this context, stocks markets and commodity prices were drove up by strong long momentum. But China's economic data released yesterday was mixed. China's official June PMI was 50.1, a record low for the year, which was mainly dragged down by new order index and production and operation activities index; HSBC's June PMI for China recorded 48.2, standing below 50 for a second consecutive month, with output index, new export order index and employment still sluggish. Technically market is getting support at 109.60 and below same could see a test of 108.30 level, And resistance is now likely to be seen at 111.70, a move above could see prices testing 112.60.