Copper settled at 448.45 overall prices fluctuated between 443-449 during the Chinese New Year holiday period, struggling around the 445 for the week. The slight drop in LME copper was due largely to copper’s weak fundamentals side. Copper stocks exceeding 400k mt depressed long investors’ confidence and kept them cautious towards trading. On the macro front, the US reported mixed economic data, with the trade deficit for December narrowing to the lowest in recent three years. This indicated that the US economy staged better than expected performance in 4Q and lent support to base metals and other risk assets. The US retail sales saw nearly no increase in January as tax hikes and increasing oil prices restricted spending. The US initial jobless claims dropped more than anticipated last week, down to 341,000, but the industrial output came in unfavorable in January. In the euro zone, ECB's Weidmann said the euro is not “seriously overvalued”, which helped the euro surge early last week. The G7 meeting was held on February 12 and issued statement that their monetary and fiscal policy fronts will be aimed at bolstering their economies, not driving down the value of their currencies. The statement was considered to turn green light for Japan to stimulate economy through increasing inflation. For today's session market is looking to take support at 448, a break below could see a test of 447.6 and where as resistance is now likely to be seen at 448.7, a move above could see prices testing 449.
Copper trading range for the day is 447.6-449.
Copper gained as investors hoped a surge of copper buying will emerge when Chinese participants return from holiday.
In the United States, manufacturing got off to a weak start this year as motor vehicle production tumbled.
China's copper stockpiles at the year-end reached record levels above 1 million tonnes.
Warehouse stock for Copper at LME was at 401675mt that is up by 2550mt.
SELL COPPER FEB BELOW 447.50 SL 449.50 TGT 445.50-443.80-442. MCX
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