SHANGHAI, Mar. 25 (SMM) -- As market focus is on the upcoming European Union Summit on this Thursday and Friday, Fitch Ratings downgraded the credit rating for Portugal. The news of a lower credit rating for Portugal increased market risk aversion. As a result, the euro dropped to a 10-month low against the dollar, which hit a high level of 81.92 last seen in May 2009.
In other news, the US economic data was not as good as expected. According to the US Commerce Department, the US durable orders in February was up 0.5%, reaching to USD 178.12 billion after seasonal adjustment. The data was lower than the expected growth of 0.6%. A stronger US dollar and increased risk aversion resulted in sell-off in industrial metals markets. LME copper prices closed at 7,345/mt, down USD 115/mt.
SMM believes SHFE copper market will open lower on Thursday due to falling LME copper prices. Particular attention should be paid to spot discounts, so as to see any improvement in downstream consumption.
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