SHANGHAI, Sept. 29 (SMM) –The European Union (EU), European Central Bank (ECB) and International Monetary Fund (IMF) Wednesday organized an investigation team and announced to reassess the execution of Greece's austerity measures, adding that Greece could only get the bailout package to avoid defaults after getting approval from the investigation team. Meanwhile, Germany indicated that new plans for European debt problems were likely to be negotiated again. Besides, both Germany's Import Prices Index for August and Italy's Business Confidence Index for September were well below previous figures and market expectations, spurring market worries over Europe's debt issues again. Market concerns that the EU was facing huge challenges as the deadline of Euro-zone countries debts approached, which caused another round of position closings by long investors, although the US in the evening announced positive economic data. As a result, all the US and European stock markets closed lower, and LME copper prices tumbled and closed at an intraday low of USD 7,067/mt, down more than 7%, and nearly surrendering all gains on the previous trading day.
LME copper prices directly opened down at near USD 6,900/mt in today's morning business, with weak support at USD 6,800/mt after falling below the important psychological USD 7,000/mt level. Coupled with bearish environment, Comex copper prices and gold and crude oil prices all slid. However, Italy, Spain and France continue to ban short-selling, which will help restrict the Euro's downside room. Therefore, LME copper prices are expected between USD 6,750-7,000/mt during today's Asian trading hours. Chinese stock markets will open down following significant declines in US equity markets, which will dampen SHFE copper prices. Hence, SHFE copper prices will likely touch the daily limit-down after opening significantly down, posting weak movements during the whole trading day, while SHFE 1112 copper contract prices will move between RMB 51,600-52,500/mt.