Copper yesterday traded with the negative node and settled -0.68% down at 410.20 and tested the low of 396.50 one of the biggest fall in this year after Kim Jong Un called nuclear weapons development one of North Korea’s top priorities as his country ratcheted up tensions by declaring a state of war with South Korea and reiterating threats to attack the US. China’s official PMI data comes courtesy of the country’s National Bureau of Statistics, which surveys 3,000 companies across 21 industries. That compares with the flash reading provided by HSBC, which surveys just 430 Chinese firms. For traders, the China PMI may be viewed as a split decision of sorts. The reading above 50 is encouraging, it is above February’s reading and an 11-month high, but the March figure did miss estimates. Basemetal also slipped on news Bank of Cyprus depositors will have 37.5% of their deposits above EUR100,000 turned into voting shares in the bank, which would also entitle the depositors to future dividends. Another 22.5% of the deposits will be withheld to ensure the bank is properly capitalized. In yesterday's trading session copper has touched the low of 396.5 after opening at 413, and finally settled at 410.2. For today's session market is looking to take support at 400.1, a break below could see a test of 390.1 and where as resistance is now likely to be seen at 416.6, a move above could see prices testing 423.1.

Trading Ideas:

Copper trading range for the day is 390.1-423.1.

Copper fell as fallout from a rescue deal for Cyprus and continuing political problems in Italy kept investors wary of risk.

Recent data suggests that the housing market recovery is still on track, helping to underpin copper

Data from US indicate country’s initial jobless claims and economic growth missed forecasts, but did improve from previous reading.