Market News
2 min read | Updated on September 24, 2024, 17:28 IST
SUMMARY
MCX base metals futures rallied on Tuesday on the back of stimulus measures announced by China. The increased production and consumption from the country will likely result in strong demand for commodities including base metals and crude oil.
MCX base metals rally as China announces stimulus measures
MCX base metal futures regained strength on Tuesday and saw decent gains after China announced a number of changes to provide stimulus to the economy. Meanwhile, crude oil and natural gas futures traded higher as well.
Gold futures on the MCX were trading higher by 0.44% at ₹74,623 per 10 grams.
Meanwhile, silver futures on the MCX were trading higher by 0.78% and were trading at ₹89,926 per kg. The metal had hit an intraday high of ₹90,328 and was off its day’s low of ₹89,145.
Base metals were trading higher on Tuesday as China announced a serious of measures to revive demand and provide support to the weakening economy. The measures is expected to benefit base metals as demand grows. Copper futures on the MCX trading higher by 3.67% at ₹836.60.
Meanwhile, zinc futures were up 2.3% to trade at ₹272. Lead futures were trading higher by 3% at ₹184.5.
MCX crude oil futures on Monday were trading higher by 2.4% at ₹6,042 per barrel. Crude oil prices were driven higher as China announced a series of measures to revive demand. China is the largest importer of crude oil. Additionally, rising tensions in the Middle East have also led to an increase in the commodity’s price.
Natural gas futures on the MCX were up 2% on Tuesday and were trading at ₹223.4. Natural gas futures extended their gains on after rallying nearly 7% in the previous session.
China was in the news on Tuesday after the country announced a series of stimulus measures to provide support to the weakening economy. The People’s Bank of China announced that it will cut the seven-day repo rate and interest rates will be lowered for the medium-term lending facility and loan prime rates. Measures were also announced to address the property crisis and provide a boost to spending.
Efforts to revive demand in China will prove to be beneficial to the commodity markets with base metals and crude oil being in focus.
After last week’s rate cut decisions from the US Fed, eyes are now on the upcoming PCE inflation data.
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