SHANGHAI, Aug. 24 (SMM) –Lifted by steady manufacturing activities in China and German, the Euro closed higher on Tuesday. Meanwhile, markets are preparing for Fed Chairman Ben Bernanke's speech at the central bank's annual retreat in Wyoming on Friday, believing there will be further stimulus measures to boost the economy, sending the US dollar down significantly. In response, LME copper prices continued the rising momentum during earlier European and American trading hours. Besides, labor disputes at some of the world's largest copper mines also supported LME copper prices, which touched USD 8,937/mt after breaking USD 8,900/mt. However, the US later announced new home sales fell by 0.7% in July, plummeting to a fiver-month low, and the US Richmond Fed Manufacturing Index for August was also pessimistic. As a result, LME copper prices narrowed gains at the tail of trading, and closed at USD 8,851/mt.
During Wednesday's Asian trading hours, the US dollar will close higher after Tuesday's declines, which will weigh down LME copper prices. Furthermore, Moody's downgraded Japan's credit rating, and gold prices continued to rise due to safe-have demands, both of which will dampen market confidence and weigh on Asian stock markets. Moreover, copper prices on the Comex increased slightly, and with support at the 5 and 10-day moving averages for the low-end, LME copper prices will fluctuate between USD 8,790-8,890/mt. In domestic markets, Chinese stock markets will open higher following significantly rising US equity markets, but as trading volumes failed to increase yesterday, the rebound will not likely sustain. SHFE three-month copper contract prices will meet great resistance at RMB 67,000/mt, and SHFE 1111 copper contract prices will move in the RMB 66,400-67,100/mt range.