SHANGHAI, Nov. 16 (SMM) –Italian bond yields continued to soar on Tuesday, fueling investor worries that Italian debt problems would spread and drag down global economy. In this context, LME copper prices lost USD 7,700/mt in the session, down to USD 7,645/mt. However, the US later announced growth in retail sales during October was higher than expected, an indicator of an improvement in the US economic growth. Besides, the Federal Reserve Bank of New York's November survey of regional manufacturers showed expansion for the first time since May, which helped market sentiment improve and US equities markets turn to increase after initially falling. Coupled with positive news that workers at Grasberg copper mine would extend the strike till the middle of December, LME copper prices reversed previous declines at the tail of trading, with prices finally closing at USD 7,753/mt, the only base metal closing with gains.
Asian markets will continue to absorb the US positive data, but increasing Italian bond yields will still weigh on copper market, which will keep investors on edge. LME copper prices will move between USD 7,650-7,800/mt during today's Asian trading hours, with a similar fluctuating band on the prior day. Chinese stock markets will continue to fluctuate. SHFE copper prices will follow LME copper prices to struggle at the 10-day moving average, while SHFE 1201 copper contract prices will fluctuate in the RMB 56,500-57,900/mt range.