Copper yesterday traded in the range and settled marginally -0.51% down at 423.10 as ongoing expectations policy makers in China and the US will increase efforts to boost their slowing economies continued to boost sentiment on the industrial metal. Gains were limited as investors continued to worry over downbeat global growth prospects. Market sentiment remained supported ahead of testimony to the Senate by Fed, amid ongoing speculation over whether the US central bank will introduce more easing to stimulate the economy. Expectations for another round of easing by the bank were boosted after official data showing a 3rd consecutive monthly decline in US retail sales in June. Meanwhile, hopes for additional stimulus measures from China mounted after Chinese Premier said over the weekend that policy makers were likely to introduce measures to boost growth in the H2. The comments followed government data released last week showing China's Q2 economic growth slowed to a 3 year low of 7.6% vs 8.1%. There are also expectations in the market that China will cut its banks' reserve requirement ratio to boost lending and support growth in the world's largest copper consumer. For today's session market is looking to take support at 420.8, a break below could see a test of 418.5 and where as resistance is now likely to be seen at 426.6, a move above could see prices testing 430.2.
Copper trading range for the day is 418.5-430.1.
Copper dropped after Ben Bernanke delivered a downbeat assessment of U. S. economy and did not talk about taking new easing measures
Fed chairman avoided giving direct clues as to whether the bank would launch new measures to spur growth.
Copper daily stocks at Shanghai exchange came up by 2599 tonnes
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