The base metal complex recaptures the show in the previous session as the European Union agreed to protect the bloc's debtstricken nations, boosting confidence metals demand to recover. The group made a free fall in the past week over the accelerating Greece concerns and rally in dollar index

The Dollar Index, a six-currency gauge of the greenback's strength, faced a heavy blow as the European finance ministers crafted huge aid package for countries under debt attack. Moreover, better-than-expected trade surplus and current account surplus from Germany also helped the Euro regain its lost grounds

As per the Beijing-based customs office, the imports of copper and products into China, the world's biggest consumer, were 436,345 tonnes in April-- 4.4% below March's 456,240 tonnes and 9% more than the year-earlier 399,830 tonnes

Euro zone ministers agreed to a nearly $1 trillion aid package to tackle the debt crisis in euro-zone from spreading to other member states. The package consists of 440 billion Euros in guarantees plus 60 billion Euros in the form of a stabilization fund and an extra 250 billion Euros from the International monetary fund

OUTLOOK

Industrial production in China, the world's biggest metals user, expanded 17.8% from a year earlier, down from 18.1% in March and 18.5% expected. However, the increase in new Yuan loans for April to 774 billon as compares to prior of 510.7 billion and expected of 585 billion suggest growth to follow.

The growing inflation, bank lending exceeded estimates and record-jump in property prices, pressurize the government to raise interest rates and allow the currency to appreciate Day ahead, the market does not expect any major data releases from the Euro-zone. Germany is due to release the Consumer Price index for April month, expecting to remain unchanged at -0.10%, while the Wholesale price index is easing to 0.90% as compares to 1.30%.

Later in the evening, the US is due to release the Wholesale inventories for March month, indicting the growth rate reducing to 0.50% as compares to prior of 0.60%

The Asian equities trade mixed to higher after the around 4% rise in the Wall Street equities. Gains in equity markets, in general bring in confidence in the commodities markets

The dollar index opened at 83.831, while touched an intraday high 84.194 as of now, wading low by 1.08%. The dollar index recouped as the Euro currency could remain weak on the regions uncertainties. This could place a downward pressure on the metals markets making it dearer for the overseas investors

Consolidating the view we suggest MCX base metals to open slightly low, following the weakness in the electronic session at LME. Recoiling dollar index and lower industrial growth in China could be the bearish factors for the day. Moreover, absence of economic data releases would mark lackluster trades. Metals are expected to remain slightly up during the Asian hours while maintain range bound trades with bias on lower side for the day.

information from www.commodityonline.com