SHANGHAI, Aug. 12 (SMM) –The US Labor Department overnight announced the number of people claiming new jobless benefits was 395,000 last week, falling to the lowest level in four months. The better-than-expected US jobless claims data lifted US equity markets, which rebounded significantly. Meanwhile, despite a rally in the US dollar index, the spot exchange rate of RMB against the US dollar still rose significantly, posting the biggest daily gain in nine months. As a result, investors in Europe and the US believed China's Central Government is confident to drive its economy through expanding domestic demand rather than depending on exports. Since the positive reading in the US employment data boosted market confidence, LME copper prices closed at USD 8,888/mt, reversing earlier losses, and registering the biggest daily increase in nearly nine months.
There was news in this morning that France, Italy, Spain and Belgium would ban short-selling of stocks from today, showing European leader's resolution to stabilize Euro-zone markets. However, investors were also worried that the European debt crisis would worsen. In this context, the euro and the US dollar index are expected to move out of fluctuations. Market sentiment will remain cautious during Friday's Asian trading hours, and LME copper prices are expected to move between USD 8,850-8,990/mt, with upward pressures available. In domestic market, lifted by the US equity markets, stock markets will open higher today and then fluctuate. SHFE three-month copper contract prices will fluctuate around the daily moving average after a high open, and SHFE 1110 copper contract prices will move in the RMB 66,500-67,800/mt range.