SHANGHAI, Nov. 4 (SMM) –Panic market sentiment overnight was reassured amid the news that Greece may cancel the plan to hold a referendum on the country's bailout fund and after the European Central Bank (ECB) announced to cut the benchmark interest rate. In response, the Euro rallied from low levels and closed with strong gains, stabilizing at 1.38. The positive US economic data announced in the evening also improved investor risk appetite, which caused US equity markets to close higher across the board. As a result, LME copper prices rebounded from the lows registered at the tail of Asian trading hours, and directly challenged the 5-day moving average before meeting resistance, with the highest price touching USD 7,960/mt. Finally, LME copper prices closed at USD 7,903/mt. It was worth noticing that cancelled warrants continued to increase significantly on the previous day, and accounted for 14.24% of total LME copper inventories. Changes in cancelled warrants were largely in Kwangyang of South Korea, and investors predicted they were headed for Shanghai.
During today's Asian trading hours, the US dollar index will struggle near the 20-day moving average, imposing great pressures on LME copper price trends. The US will announce the non-farm payrolls this evening and will also weigh on LME copper prices, which are expected to move between USD 7,780 -7,980/mt. Chinese stock markets will continue to move above 2,500 points. SHFE copper prices will open higher today, tracking LME copper prices to fluctuate, but new long investors will keep cautious since selling pressures seem to be on the rise after a lot of long investors left the market on the prior day, while SHFE 1201 copper contract prices will fluctuate in the RMB 57,200 -58,800/mt range.