As expected the base metals started last week on the back-foot, but as the week progressed, the complex valiantly fended off further selling pressure and managed to hold well above the weekly lows. There is market talk about further cuts in US interest rates and that is why we have witnessed steadier equity markets in the US. However, Greenspan might have pushed himself in a corner, as an interest rate cut at this point of time may be viewed as damage control rather than slick monetary policy, which implies that smart money will continue to flow out of equities at rallies.
NSTL
