Copper yesterday traded in the tight range and settled 0.08% up at 425.30 as sustained concerns over the health of the global economy continued to weigh on demand for the industrial metal. Copper futures tumbled more than 2% last week after official data showed that the US economy added just 80k jobs in June, below market expectations for a gain of around 90k. Although the employment report was weaker than expected, it was not bad enough to spur the Fed to launch a QE3. Elsewhere, in China, government data released earlier showed that consumer price inflation accelerated at the slowest rate since Jan'10 in June, potentially giving Beijing room to further ease monetary policy. Investors were also looking ahead to Chinese economic data due out later this week, including second quarter growth figures, to gauge whether China is a heading towards a hard or a soft landing. Meanwhile, traders are also awaiting a meeting of euro zone FM in Brussels, to discuss a plan announced last month to help the region's indebted nations and banking systems. For today's session market is looking to take support at 423.8, a break below could see a test of 422.3 and where as resistance is now likely to be seen at 426.6, a move above could see prices testing 427.9.
Copper trading range for the day is 422.3-427.9.
Copper edged higher on hopes for more monetary easing by China
An unexpected rate cut from China last week stocked fears of a deeper than expected slowdown in economy.
China's copper imports rose 47 percent from a year earlier to 2.502 million tonnes in the first half
- Decision on gas price revision taken under RIL’s coercion: Dasgupta
- Government to pay $8.1 billion fuel subsidy in fourth quarter
- Oil firms falls as government considers export parity pricing model
- Essar Oil to sign $1 billion financing co-operation deal with CDB
- ONGC may sell stakes in deep-water blocks to Shell