LME base metals closed higher on Thursday, boosted by the weak dollar, strong stock market and favorable economic data. Base metals continued to rise throughout the day, as strong corporate profits encouraged the Dow Jones Industrial Average to rise above the 9000 mark for the first time since 65438+ 10, and the existing home sales data in the United States was better than expected.

According to data released by the National Real Estate Association (NAR) on Thursday, the sales of existing homes in the United States increased by 3.6% in June, with an annual rate of 4.89 million, compared with the previous market estimate of 4.84 million.

Leon Westgate, a metal analyst at Standard Bank, also pointed out that the dollar supported the price of basic metals against major soft currencies. The dollar rose to $65,438 +0.4233 against the euro and reported $65,438 +0.4206 on Wednesday.

Barclays Capital said that the global demand for basic metals has bottomed out and it is expected that the demand will pick up in the rest of 2009. The bank pointed out that "key economic indicators related to metals, such as the new order classification index in PMI and the improvement of automobile sales data, have brought optimism to the market.

Technically, the trend reversal is established from the weekly line, and the target position of the double bottom has basically arrived. Be alert to the possibility of a reversal in the next few weeks.