SHANGHAI, Nov. 2 (SMM) –Investors in the US and European markets continued to absorb China's economic data on Tuesday, and they believed as China's official Purchasing Managers' Index (PMI) for the manufacturing sector fell in October following an improvement in two consecutive months and was lower than most analysts expected, China's economic growth in 4Q would likely continue to fall. Besides, the manufacturing indexes announced in other countries were also pessimistic, dampening LME copper prices, which declined below USD 7,700/mt and slid to USD 7,635/mt. However, LME copper prices finally got support at the 10-day moving average temporarily, and ended the day at USD 7,753/mt. Copper's fundamental side helped LME copper prices show more resilience than other base metals.
Asian markets today will continue to absorb sluggish economic reports in all countries on the prior day. Greek Prime Minister Papandreou surprisingly called its people to vote on European Union's (EU) bailout, which was considered by investors as an increasing chance that Greece will default on its debt, depressing the already weak copper markets. Market concerns that a credit crunch in the euro-zone area and a possible spread to other emerging countries in Asia are negative for today's market movements. Comex copper and crude oil prices also trended lower this morning, while investors are keeping cautious before the G20 Finance Minster meeting and Federal Reserve (Fed) meeting. Therefore, LME copper prices will move between USD 7,500-7,780/mt during today's Asian trading hours, testing the moving averages at the low-end. Chinese stock markets will open lower today and test 2,400 points. SHFE copper prices will open down, with pessimistic price trends, while SHFE 1201 copper contract prices will fluctuate in the RMB 55,500-57,000 range.