SHANGHAI, Nov. 7 (SMM) –Last Friday, market transactions kept cautious, as Greece's Prime Minister George Papandreou would face a confidence vote later in the evening and since whether or not the country would accept the bailout package remained unknown. Later, German Chancellor Merkel said fewer members of G20 promised to participate in the Euro-zone bailout plan, dampening commodity markets and helping the US dollar move higher for risk aversion. In response, LME copper prices slid to USD 7,825/mt from the fluctuating level of USD 8,000/mt in Asian copper market. At the tail of trading, the result of the G20 Summit came out that no member made a promise to provide money for the Euro-zone bailout fund, and the G20 Summit only passed an agreement that the International Monetary Fund (IMF) would provide further help for the bailout fund, causing US equity markets to close lower across the board. A mild growth in the economic data of the US labor market seemed to have limited impacts on commodity markets given market focus on the Euro-zone area. As a result, LME copper prices kept fluctuating at low levels and failed to pare Asian gains, with prices closing at the 10-day moving average of USD 7,875/mt, down slightly. Besides, LME copper inventories continued to fall, down 4,275 mt to 417,850 mt in the week ending November 4th, the lowest since late February 2011, which will continue to support LME copper prices.
Greece's Prime Minister George Papandreou finally survived the confidence vote and reached agreements on a new unity government for Greece, easing market worries. Comex copper and crude oil prices moved higher this morning, and a resistance at 77 for the US dollar will also support LME copper prices, which are expected to move between USD 7,820 -7,980/mt during today's Asian trading hours. Chinese stock markets will continue to gain support from market expectations that People's Bank of China (PBOC) will ease some tightening measures. SHFE copper prices will move higher after a low open, while SHFE 1201 copper contract prices will fluctuate in the RMB 57,500 -58,800/mt range.