Zinc yesterday traded with the negative node and settled -0.64% down at 101.25 tracking LME zinc market overnight moved steadily between $1,830-1,840/mt during Asian trading hours, and retreated to $1,830/mt as Chinese stocks market dropped. The lingering European debt issues remain a major market concern, and meanwhile, Japan’s GDP growth for 2Q dropped to 1.4%, missing market expectations of 2.7%. As a result, LME zinc market slid to $1,809/mt. Finally, LME zinc market ended at $1,822/mt, down $15/mt, or a drop of USD. Data released by China on Aug. 10 helped raise hopes for more stimulus after it showed exports in July rose just 1percent from a year earlier and new loans were at a 10-month low, suggesting that pro-growth policies have been insufficient and more urgent action may be needed to stabilise the economy. Adding to the gloomy global growth picture, Japan's economic expansion slowed more than expected in the second quarter as a rebound in consumer spending started to lose momentum and Europe's debt crisis weighed on global demand. In the euro zone, squabbling between bloc members over whether the ECB should buy Spanish and Italian sovereign bonds as a means to ease the debt crisis also kept markets on edge, with Finland's PM saying he was critically opposed to such a move.For today's session market is looking to take support at 100.7, a break below could see a test of 100.2 and where as resistance is now likely to be seen at 101.9, a move above could see prices testing 102.6.

Trading Ideas:

Zinc trading range for the day is 100.18-102.58.

Zinc dropped as the lingering European debt issues remain a major market concern

The release of US July annual rate core PPI likely to boost market confidence

Zinc daily stocks at Shanghai exchange came down by 599 tonnes