Base metals failed to capitalise on improving technical picture against a background of shaky capital markets world over. US equities were once again made to suffer by over zealous accountants and CEOs, giving a new definition to "creative accounting". However, the weekly closes for copper and aluminium were satisfactory at just under 1670 dollars/ton (3 Months) and 1390 dollars /ton (3 Months) respectively. Friday's massive rally by US Equities was helpful, but market is likely to remain cautious as large amount of smart money may exit equities if rallies are not backed by substance. US dollars has rebounded from just under parity with euro but continues to come under pressure from Japanese yen which is proving to be a major headache for Japan that has after a longtime reported signs of economic recovery. Good news from Japan is a pleasant surprise and this is one story that is likely to be very closely watched. Western investors are still quite sceptical of Japan's ability to restructure it's ailing financial sector, sometimes due to cultural reasons. However, every one believes that it will be foolish to write-off the Japanese yet.
NSTL
