SHANGHAI, June 8 (SMM) -- The euro bounced back from low levels, along with Hungary's government's clarification of last week's statements, saying Hungary is likely to fall into the Greek-style debt crisis, and due to a plan of loan guarantees worth 440 billion euro from G20 finance ministers' meeting. In this context, the US dollar index retreated from 88.7 to 88.3, but investor risk aversion sentiment remains. The US equities still closed lower, and gold surged. LME copper prices remained sluggish, dropping to an 8-month low of USD 6,045/mt before ending at USD 6,125/mt, down USD 115/mt.
SHFE copper prices fell slower than LME copper prices did on Monday. Hence, SHFE copper prices will continue to weaken on Tuesday. SMM holds a cautiously pessimistic view towards copper outlook, with weak movements expected. However, bargain hunting will prevent copper prices from plunging in a consecutive manner. SMM believes SHFE copper prices will move between RMB 48,000-50,000/mt in the short term.
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