SHANGHAI, Aug. 9 (SMM) –LME copper prices overnight continued to fluctuate around USD 9,000/mt in earlier trading hours. As the European and American markets digested the US credit rating downgrade, US equity markets began to tumble, with the Dow Jones Industrial Average slumping by 5.55% to close at a low level of 10,809 points. Amid panic sell-off sentiment, investors scrambled to the gold market for risk aversion. Coupled with a high US dollar index at above 75 points, LME copper prices dived below USD 8,800, an important support in early stages, and finally closed at a recent intraday low of USD 8,766/mt. Meanwhile, copper prices on the Comex market also closed below USD 4/pound for the first time since May this year. Bearish sentiment continued to dominate the market.
During Tuesday's Asian trading hours, LME copper prices moved lower to USD 8,500/mt after breaking USD 8,700/mt after opening in the morning business. China will announce the CPI data for July today, which will weigh on LME copper prices. In this context, LME copper prices are expected to move between USD 8,500-8,650/mt. In domestic market, the Shanghai Composite Index will open significantly down at below 2,500 points due to impacts from US equity markets, and the movements will be pessimistic. Hence, SMM believes SHFE three-month copper contract prices will open lower and will not likely regain momentum, while SHFE 1110 copper contract prices will move in the RMB 63,500-65,000/mt range.