SHANGHAI, Oct. 27 (SMM) –Some investors Wednesday increased purchases due to expectations that China's government would very soon introduce some looser monetary measures to increase capital liquidity and ease credit loan restrictions, and that supply shortages were escalating at the world's second biggest copper mine. Later, German Parliament approved the expansion plan for the Euro-zone's bailout fund, also greatly lifting copper prices. The Euro rose to a six-week high versus the US dollar, which further supported copper prices. As a result, LME copper prices climbed to USD 7,917/mt during the trading session, touching the highest level since September 22nd. However, cautious investors chose to close most of their positions after LME copper prices reached the priciest since many thorny issues remained unresolved before the summit, while gold and silver prices continued to rebound as safe-havens. Economic figures in the US were mixed and failed to serve as a support for LME copper prices, which slid rapidly by nearly USD 300/mt and reduced previous gains. LME copper prices finally closed the day at USD 7,740/mt, a gain of 2.66%, and open interest increased to their highest level sine the middle of April.
During today's Asian trading hours, as markets will continue to absorb the positive news of German Parliament's approval of expanding the Euro-zone's bailout fund, LME copper prices will edge up, with prices expected between USD 7,630 -7,920/mt. Chinese stock markets will continue to move at high levels after a high close and an increase in trading volumes on the prior day lifted by rising US equity markets. SHFE copper prices will open higher and then drift higher, while SHFE 1201 copper contract prices will move in the RMB 56,500 -58,500/mt range.