SHANGHAI, Sept. 28 (SMM) –There were reports on Tuesday that the European leaders were considering to expand the bailout package scale and readjust the structure of bank capital, which somehow eased market worries over a contagion of the Europe's debt crisis. The Euro continued to rebound, while the US dollar moved lower to 77.394. Later, the US announced the Conference Board's consumer confidence index for September was 45.4, above the previous 44.5, and the Richmond Fed Manufacturing Index increased to -6 points in September, also improving from a -10 point reading in August, increasing investor risk appetites. In response, US equity markets closed more than 1% higher, and LME copper prices rose above USD 7,600/mt after gaining buying interest during European and American trading sessions, touching a high of near USD 7,700/mt. Finally, LME copper prices closed at USD 7,615/mt, up 4.5%, and the biggest one-day gain since February 2010.
LME copper prices surged overnight. However, the Euro will fluctuate at high levels today and faces more risks later, since there was news that the Euro-zone leaders held different views towards concrete measures to solve the region's debt issues. The US dollar will gain support at the 10-day moving average at the low-end, which will weigh on LME copper prices. Besides, Comex copper prices slumped by more than 1% this morning, depressing investor sentiment. Therefore, LME copper prices are expected between USD 7,450-7,700/mt during today's Asian trading hours. Chinese stock markets will continue to open higher due to a lift by rising US equity markets. SHFE copper prices will try to regain some of the ground lost earlier after opening higher today, with unstable price movements, while SHFE 1112 copper contract prices will move in the RMB 55,500-57,700/mt.