SHANGHAI, Aug. 26 (SMM) –LME copper prices were pushed up by large-scale buying support to a high of USD 9,075/mt in three weeks, due to confidence in Asian economic growth prospects and as markets overnight bet the US would introduce QE3 soon. However, the US Labor Department later announced the US initial jobless claims rose to 417,000 last week, higher than the expected 405,000 and the prior figure, which caused the US equity markets to close down more than 1.5% and the US dollar index to advance to 74.40 due to risk aversion sentiment. As a result, LME copper prices narrowed the gains at the tail of trading, and closed at USD 9,049/mt, up nearly 2%.
During Friday's Asian trading hours, although copper prices on the Comex tended to rise in the morning business, LME copper prices will meet profit-taking and surrender the gains after increasing significantly on Thursday, with prices expected between USD 8,880-9,030/mt. In domestic markets, despite rising trading volumes and a high close on the previous trading day, domestic stock markets will have limited momentum to move higher due to a slump in US equity markets overnight. SHFE three-month copper contract prices will open higher around RMB 67,500/mt, and will follow LME copper prices to reach highs but will meet resistance. SHFE 1111 copper contract prices will move in the RMB 66,700-67,800/mt range.