Chinese regulatory curbs and optimistic Fed hurt metals: Angel Broking

Views of Mr. Prathamesh Mallya (Chief Analyst- Non-Agri Commodities & Currencies, Angel Broking):

"Base metals witnessed pressure today following statement by China''s vice housing minister Lu Kehua that preparatory work for nationwide property tax has already been started in order to stabilize the housing market and crack down on irregularities. This step will likely prompt further slowdown in the construction sector, at a time when China''s home price growth already slowed for last consecutive four months. This is likely to be a drag on base metals since construction sector is major demand driver.

Besides, recent FOMC meeting minutes revealed that many Fed policymakers believed in hiking rates "fairly soon" in case jobs and inflation turn up in line with expectations."

Source : Equity Bulls

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