SHANGHAI, June 7 (SMM) -- The lower-than-expected US non-farm employment data sent US equities markets lower, with major indexes down as much as 3%, and Dow Jones fell below 10,000 points. Fears about debt conditions in Hungary rekindled market concerns over debt issues in Europe, and the euro tumbled as a result, weakening to a new 4-year low, down as low as 1.1881, and finally closed at above 1.19. In this context, LME copper prices slid to a daily session low of USD 6,240/mt from USD 6,550/mt, and finally closed at USD 6,250/mt.
On Monday's electronic trading, the euro continued to fall, and LME copper prices opened low at USD 6,195/mt, and touched USD 6,086/mt at 9:00 am, moving around USD 6,110/mt, close to a fluctuating level of USD 6,000/mt seen in September 2009. Hence, SMM believes support for LME copper prices at USD 6,000/mt will be weak, since a downward trend is still on the track now.
On Monday, SHFE copper prices dropped to a daily limit after opening, a sign of dominant short positions in the market. Particular attention should be paid to performance in China's stocks markets. The SHFE/LME copper price ratio is above 8.15, with supply of imported copper expected to be ample on Monday, but buying interest is predicted to be low amid such a low sentiment.
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