As we signed off on Tuesday bearish aluminium traders seemed to err on the side of caution, with the downward break of 2400 not instantly triggering the heavy selling that had been expected in some quarters. In the premarket trading had resumed c. 2400 with prices then slipping to 2382, after which they bottomed at 2375 in the morning open outcry sessions. A convincing break below 2400 would set the market on course towards eventual objectives c. 2200, Cliff Green Consultancy had noted for some days. However, the US FOMC interest rate announcement due after London's close yesterday kept sellers at bay. Instead, values recovered in the afternoon as equities markets rose and the dollar melted. In the pm kerb prices reached 2420 before slipping back at the close, though they were marked higher again in late trading as the Fed unexpectedly cut rates aggressively.
Nearby spreads and forwards were essentially unchanged, with movement confined to $0.50-$1.00/mth either way in 2010/2011.
On Wednesday morning
LME Select clocked its first trade in Asia at 2420 after which prices climbed rapidly to a top of 2446 before London dealing restarted. At time of writing they had pulled back to 2420 as
LME stocks rose again, though with the dollar flailing and copper, nickel and the others surging ahead, they were currently steady above 2430. In their latest daily report last night CGC looked to add to fresh shorts instigated yesterday, with completed technical patterns still expected to push values towards the 2200 region on the coming weeks, they wrote. Last at 2439, on 2,300 lots.
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