Copper settled down -0.96% at 395.80 eased towards one-month lows, as investors fretted about demand in top consumer China amid government efforts to energise the economy. China's central bank said it would keep monetary policy steady in 2014, even as the finance ministry said fiscal spending had surged nearly 25% in May. China's cabinet also revealed that it was now planning more big infrastructure projects, including highways, train networks and oil and gas distribution and storage facilities, as part of its efforts to keep the economy growing at a stable rate. Worries over Chinese copper financing are prompting some banks to wind up deals or stop doing them altogether, while some banks are telling their customers to shift metal into safer warehouses as a fraud investigation in a China port rumbles on. Meanwhile, thousands of tonnes of "invisible" copper now being hurriedly ushered out of some Chinese warehouses may remain out of sight for months longer, as banks and traders seeking safer havens for their metal opt out of the London Metal Exchange network. Prices may continious to trade lower as concerns over China’s metal demand and weak US economic data reported Thursday weighed market on. The US retail sales grew more slowly than expected in May, and last week’s initial jobless claims also were above forecast and previous figures. Also the ongoing investigation at the Port of Qingdao and escalating tensions in Iraq should stoke uncertainties in base metals markets on Friday. With the lack of support from fundamentals, Copper prices look set to fall in the near term. Technically market is under fresh selling and getting support at 393.4 and below same could see a test of 390.8 level, And resistance is now likely to be seen at 399.8, a move above could see prices testing 403.6.

Trading Ideas:

Copper trading range for the day is 390.8-403.6.

Copper dropped on caution over a Chinese investigation into metals financing that could impact metals trade and release metal onto the market.

China's central bank said it would keep monetary policy steady in 2014, even as the finance ministry said fiscal spending had surged nearly 25 percent in May.

Thousands of tonnes of "invisible" copper now being hurriedly ushered out of some Chinese warehouses may remain out of sight for months longer