SHANGHAI, Oct. 25 (SMM) –The US and European markets Monday were still focused on China's data, including HSBC China Manufacturing Purchasing Managers Index (PMI) and China's refined copper imports data, both of which turned to be positive and supported LME copper prices. Besides, market pessimistic expectations Euro-zone leaders would reach a deal to solve the region's debt crisis heightened investor risk appetites, helping global stock markets touch the highest level in seven weeks and US crude oil prices surge to above USD 90/bbl. Coupled with short-covering after the US financial market opened, LME copper prices were pushed up abruptly and broke out USD 7,600/mt after fluctuating around USD 7,400/mt. Finally, LME copper prices closed at a recent daily high of USD 7,657/mt, up for two consecutive days, up 7% to near a one-month high, and registering the biggest two-day gain of 12% since January 2009. However, trading volumes for LME copper failed to post better performance as LME copper price gains, since investors were cautious about bullish sentiment.
Comex copper prices fluctuated lower this morning, and LME copper prices also slid after the opening. Due to a lack of big positive market news, LME copper prices are unlikely to gain continuously rising momentum. However, pessimistic sentiment about the EU summit will provide some support for LME copper prices. Therefore, LME copper prices are expected to move between USD 7,500-7,650/mt during today's Asian trading hours. Chinese stock markets will unlikely move upward today. SHFE copper prices will open higher and then probably fall since long and short investors are expected to close positions on a large scale, while SHFE 1201 copper contract prices will fluctuate in the RMB 55,000-56,500/mt range.