SHANGHAI, Aug. 26 (SMM) -- The US Department of Labor announced last night the US new home sales in July slumped by 12.4% to a 276,000 annual rate from June levels, much lower than the prediction of 330,000. The weaker-than-expected housing data in the US weighed down commodity markets, and LME copper prices extended declines, with prices dipping to a 20-day low of USD 7,030/mt. However, the recovering US stocks helped LME copper prices reverse some losses later, and LME copper prices finally closed at USD 7,125/mt, down USD 25/mt.
LME copper prices have pared some losses in Asian trading period this morning, with prices already rebounding to USD 7,200/mt. The US government will release GDP data on Friday, and SMM believes LME copper prices will find support at USD 7,100/mt in the near term, and any price declines will be limited even future economic data is negative.
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