SHANGHAI, Aug. 15 (SMM) –The US announced mixed economic data last Friday, but US equity markets continued to close higher after posting gains in the previous trading day. However, market concerns over global economic growth lingered and China's demand prospects remained unclear, weighing down all base metals on the LME market. In response, LME copper prices extended the falling trends in the previous two weeks, registering a continuous two week decline for the first time since early June this year. LME copper prices finally closed at USD 8,877/mt, failing to pare daily losses.
Copper prices on the Comex continued to fluctuate around USD 4/lb. Fewer economic figures will be announced during Monday's Asian trading hours. The euro will move upward due to improved risk appetites, but the European debt issues will drag its rising pace. The US dollar index will move around the 20-day moving average. Therefore, LME copper prices are expected to fluctuate widely after a high open, with prices expected between USD 8,850-8,990/mt. In domestic market, China's stock markets will open higher due of a lift by the increasing US equity markets. Hence, SMM believes SHFE copper prices will open higher and then fluctuate, tracking LME copper prices, and that SHFE 1110 copper contract prices will move between RMB 66,800-67,800/mt.