Copper settled up 0.49% at 431.8 due to rupee weakness after prices seen pressure amid growing concern over the outlook for metal demand from the property sector after a Chinese builder warned of a possible bond default. U. S. data was mixed on Thursday as jobless claims unexpectedly fell, suggesting the labour market recovery was gaining traction, but there was a tumble in housing starts.

Economic growth in China picked up slightly in the second quarter thanks to state stimulus measures, but analysts said Beijing needs to offer more support to meet its annual growth target in the face of a slowing property market. Copper demand is expected to weaken this year and more supply to enter the market in the second half. In the latest sign of a rise in supplies, Anglo American reported higher copper and iron ore output for the first half of the year. US housing starts fell to 893,000 in June on an annually adjusted basis, down for the second month to a low last seen in September 2013 and missing market expectations.

The country’s June building permits also dwindled to 963,000, the lowest level since January. These negative housing data suggest that the US property market is still confronted with headwinds. Meanwhile, US initial jobless claims for the week ending on July 11 dropped to a 9-week low of 302,000, a sign that the US labor market is recovering. Technically market is under short covering as market has witnessed drop in open interest by -11.64% to settled at 9144 while prices up
2.1 rupee, now Copper is getting support at 429.1 and below same could see a test of 426.3 level, And resistance is now likely to be seen at 433.4, a move above could see prices testing 434.9.

Trading Ideas:

Copper trading range for the day is 426.3-434.9.

Copper recovered in late trade after prices seen pressure amid growing concern over the outlook for metal demand from the property sector

Economic growth in China picked up slightly in the second quarter thanks to state stimulus measures.

U. S. data was mixed as jobless claims unexpectedly fell, suggesting the labour market recovery was gaining traction