Zinc settled -0.05% down at 111.05 after rallying earlier as china's manufacturing PMI rose to a 7-month high in November, sending positive signals again. LME zinc failed to break through USD 2,056/mt after opening slightly higher at USD 2,054/mt. The November manufacturing PMI in the euro zone and Germany was in line with forecasts, but PMI in France and Italy contracted slightly, sending LME zinc to an intraday low of USD 2,034/mt. Later, the retreat of the US dollar index below 80 did help push LME zinc up. Greece announced bond repurchase plan and set the purchasing prices higher than market expectation in order to attract more investors, which eased market expectation that the Greece debt crisis will deteriorate. Germany Chancellor, Angela Merkel hinted that Germany may accept Greek debt write-down, increasing risk appetite. In addition, the US fiscal cliff talk continued to weigh on the US dollar, which will lend upward momentum for base metal prices. The US ISM manufacturing index for November fell below 50 to 49.7, lower than 51.7 in October, exerting downward pressure on the US dollar. Investors will continue to focus the US fiscal cliff talk, euro zone interest rate meeting and the US non-farm employment data. For today's session market is looking to take support at 110.6, a break below could see a test of 110.2 and where as resistance is now likely to be seen at 111.6, a move above could see prices testing 112.2.

Trading Ideas:

Zinc trading range for the day is 110.18-112.18.

Zinc settled flat trimming its gains due to selling pressure after prices gained on positive release of China's data

The latest daily LME data showed 35,925 tonnes of zinc was put on warrant, or registered, in New Orleans

Chinese manufacturing output grew last month for the first time in more than a year