SHANGHAI, June 4 (SMM) -- The lingering debt issues in Europe helped the euro fall below 1.22 against the US dollar, dropping as low as 1.2151. The US dollar index climbed above 87, moving around 87.11. LME copper prices weakened for a fourth day, and dropped less than USD 6,500/mt at one time, falling as much as to USD 6,480/mt, down USD 163/mt. Later, the US announced initial jobless claims at 453,000 in the week ended May 29, and factory orders increased 1.2% in April. Although the two data were weaker than expected, positive figures indicate the US economic recovery is still under way. In this context, the US equities closed higher, helping base metals easing earlier losses. LME copper inventories fell more by 925 mt to 475, 000 mt.
Depressed by sluggish LME copper prices, SHFE copper market is expected to open low on Friday, and may hit a previous low. SMM believes SHFE copper prices will experience volatile performance on Friday, and will likely test support at RMB 52,500/mt.
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