Copper settled up 0.38% at 408.95 amid mounting optimism over the outlook for growth in the U.S. and China. Chinese Premier Li Keqiang said during his visit to Athens that China’s economy is expected to grow 7.5% this year, easing market concerns over a slowdown. Meanwhile, the US President Barack Obama said the country is prepared to launch military action against Iraq if necessary and the US is ready to send as many as 300 military advisers to Iraq. The Philly Fed manufacturing index exceeded forecast in June, and last week’s initial jobless claims hit a nearly seven-year low.  US initial jobless claims for last week were reported at 312,000, below the estimated 314,000. The Conference Board’s leading economic index rose by 0.5% MoM in May, beating April’s 0.4% increase. The Philadelphia Fed’s manufacturing index also jumped to 17.8 in June, faring better than May’s reading and expectations. US Federal Reserve Chairwoman Janet Yellen's statement dragged down the US dollar index to a three-week low, and the GBP against the US dollar hit a five-year high.  China’s probe into metals stockpiled at Qingdao Port may spur the migration of copper to near-empty London Metal Exchange warehouses in neighboring countries as banks grow wary of lending money against commodities. Technically market is under short covering as market has witnessed drop in open interest by -1.7% to settled at 16278 while prices up 1.55 rupee, now Copper is getting support at 405.6 and below same could see a test of 402.1 level, And resistance is now likely to be seen at 411.2, a move above could see prices testing 413.3.

Trading Ideas:

Copper trading range for the day is 402.1-413.3.

Copper prices recovered from lows to end with gains amid mounting optimism over the outlook for growth in the U.S. and China.

Meanwhile, in China, Premier Li Keqiang pledged to meet China’s target for economic expansion this year and ruled out a hard landing.

he Philly Fed manufacturing index exceeded forecast in June, and last week’s initial jobless claims hit a nearly seven-year low.