- Copper traded at $8,460 per tonne, up $94, while tin was up $450 at $24,450. Copper volumes were high again, with more than 15,000 lots traded on LME Select. The rest of the complex was lower, however, with aluminium trading at $2,293, down $10, and nickel at $21,858, down $42. Zinc was flat, trading at $2,190, while lead fell $48 to $2,290.
- The Chinese move was largely anticipated by markets but traders are now looking for clues as to whether anything further will be announced over the weekend with respect to interest rates. “Even if we do not see any new moves by the Chinese, the fact remains that with each successive round of eventual Chinese tightening, corrections could come our way more quickly and will exhibit much greater staying power,” MF Global analyst Ed Meir said.
- This week, analysts at nine banks surveyed by Bloomberg News predicted that China will raise rates by the end of December, which could trigger further volatility in January 2011.
Wall Street trading lightly in the red
FXstreet.com (Barcelona) - US stocks are trading in negative territory on Friday, following a day of impressive gains on robust macroeconomic fundamentals. The mood has shifted today however as China announces further tightening measures while uncertainty regarding euro-zone sovereign debt lingers in the marketplace.
After an hour of trading, major indices in New York track their global counterparts to the downside. The DOW is showing a modest loss of 12 points or 0.11% so far, while the NASDAQ and S&P drop by 0.12% and 0.20% respectively.
On a day of light volume due to little economic information, China´s move to raise banks´reserve requirements came on the heels of Fed chief Ben Bernanke defending the recent QE2 measures at a conference in Frankfurt, while criticizing the Asian giant for running a huge surplus. In particular, Bernanke argued that yuan appreciation is happening at too slow of a pace resulting in global imbalances and slow growth for its trading partners.
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