Base metals traded at firmer levels during LME premarket trading on Thursday morning, extending the corrective bounce seen since Tuesday's sharp sell-off amid renewed technical buying and bargain-hunting purchases, with a weak dollar also having an affect. "The metals seem to have found support and some are looking quite perky, notably lead and potentially copper that seems to be trying higher," William Adams of Fast Markets said.
Global political and economic uncertainties, as well as the implications of the Japanese earthquake and nuclear crisis, will continue to send ripples of volatility throughout financial markets in the short term. As well as the long-term implications of the Japanese earthquake, tsunami and subsequent nuclear crisis, there are also concerns over the Libyan situation, an upsurge in unrest in Bahrain, sovereign debt risks and inflationary pressures - all of which override fundamentals at times.
Finance ministers and central bankers from G7 countries are expected to discuss the impact of Japan's deepening crisis in a conference call early on Friday. There are small signs of risk appetite returning in the metals complex after the investment liquidation and sales earlier this week - bargain hunting was particularly evident in copper - but there has been little solid end-user interest so far.
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