SHANGHAI, Aug. 19 (SMM) –Markets overnight remained worried that the ongoing euro-zone debt crisis would shake the foundation of Europe's banks and thus affect global financial systems. Meanwhile, almost all the US economic figures released later were weak. The US consumer prices rose 0.5% in July from the prior month, weekly claims for jobless benefits rose more than market expected in the week ended August 13th, and the Philadelphia Fed's manufacturing index slumped 30.7 to the lowest since March 2009, further proving various problems the US are facing. Fears towards US economic growth and European financial stability propelled investors to stay away from copper and other economically-sensitive assets, causing US equity markets to drop significantly, with the Dow Jones Industrial Average slumping 3.68%. In response, LME copper prices lost USD 8,800/mt and closed at a recent low level USD 8,760/mt. Investors continued to reduce holdings of positions.
During Friday's Asian trading hours, the US dollar index will likely rise further. Copper prices on the Comex fell slightly in the morning session, and LME copper prices remained weak. In this context, LME copper prices are expected to move between USD 8,700-8,800/mt. In domestic markets, Chinese stock markets will continue to open lower due to impacts from slumping European and American equity markets overnight. Therefore, SHFE three-month copper contract prices will met great sell-off pressures again, while SHFE 1111 copper contract prices will move in the RMB 65,500-66,300/mt.