SHANGHAI, Sept. 14 (SMM) –German Chancellor Angela Merkel Monday made remarks to soothe investor's concerns over European debt problems and worries about a possible Greek default, helping the euro stop declining, and easing market sentiment. In response, the US dollar index fell above 77, the decline for the first time following its rising momentum. Meanwhile, the US government announced the import prices index was better than expected in August, and that IBD/TIPP Economic Optimism Index rose to 39.9 in September, better than the previous data of 35.8 and market expectation of 37.5, boosting US equity markets to close higher, which helped temporarily ease worries towards the Europe's debt issues in addition to a weak US dollar. As a result, LME copper prices gradually rallied after falling near USD 8,730/mt, with prices closing at USD 8,796/mt.
Germany, China and the ECB all have taken some measures to stop the European debt issues from escalating, limiting the euro's downside room. The US dollar index will struggle around 77, which will impose less pressures on LME copper prices. Comex copper, crude oil and gold prices all increased in this morning session, laying a foundation for increases of LME copper prices, which are expected between USD 8,780-8,900/mt during today's Asian trading hours. Chinese stock markets will continue to move below 2,500 points, which will drag down SHFE copper prices. Therefore, SHFE copper prices will follow LME copper prices to drift higher, while SHFE 1111 copper contract prices will move in the RMB 65,900-66,900/mt range.