SMM Morning Review - 2012/2/17 Copper Market

SMM Insight 09:12:36AM Feb 17, 2012 Source:SMM

SHANGHAI, Feb. 17 (SMM) –In Thursday's early US and European trading hours, the delay in the second bailout for Greece and a swap deal between the country and private creditors continued to weigh on markets, causing the euro to extend losses and dragging down commodity markets. LME copper prices gathered declining momentum after falling below the key technical support of the 30-day moving average, down directly to USD 8,200/mt at the low-end. Nevertheless, the Greek government later announced the passage of the latest austerity measures and pledged to cut spending, which heightened market expectations Greece would get the second bailout next Monday. In response, the euro rose considerably, and helped LME copper prices rally from the lows. Besides, economic figures from the US were also positive, revealing initial jobless claims dropped to a 4-year low last week, which led US equities to close 1% higher. As a result, LME copper prices rebounded to early trading session levels before finally ending at USD 8,371/mt, with temporary support at the 30-day moving average.

Upbeat US economic data overnight will continue to prop up LME copper prices. Combined with the need of correction following rapid declines on the prior day, LME copper prices are expect to fluctuate higher between USD 8,280-8,420/mt during today's Asian trading session. Chinese stock prices will continue to hold firm. SHFE copper prices will follow LME copper to open higher, and then drift higher, while SHFE 1205 copper contract prices will move in the RMB 59,200-60,300/mt range. Spot copper discounts are estimated between negative RMB 330-220/mt versus SHFE 1203 copper contracts.    
 

Key Words:  copper morning review  

SMM Morning Review - 2012/2/17 Copper Market

SMM Insight 09:12:36AM Feb 17, 2012 Source:SMM

SHANGHAI, Feb. 17 (SMM) –In Thursday's early US and European trading hours, the delay in the second bailout for Greece and a swap deal between the country and private creditors continued to weigh on markets, causing the euro to extend losses and dragging down commodity markets. LME copper prices gathered declining momentum after falling below the key technical support of the 30-day moving average, down directly to USD 8,200/mt at the low-end. Nevertheless, the Greek government later announced the passage of the latest austerity measures and pledged to cut spending, which heightened market expectations Greece would get the second bailout next Monday. In response, the euro rose considerably, and helped LME copper prices rally from the lows. Besides, economic figures from the US were also positive, revealing initial jobless claims dropped to a 4-year low last week, which led US equities to close 1% higher. As a result, LME copper prices rebounded to early trading session levels before finally ending at USD 8,371/mt, with temporary support at the 30-day moving average.

Upbeat US economic data overnight will continue to prop up LME copper prices. Combined with the need of correction following rapid declines on the prior day, LME copper prices are expect to fluctuate higher between USD 8,280-8,420/mt during today's Asian trading session. Chinese stock prices will continue to hold firm. SHFE copper prices will follow LME copper to open higher, and then drift higher, while SHFE 1205 copper contract prices will move in the RMB 59,200-60,300/mt range. Spot copper discounts are estimated between negative RMB 330-220/mt versus SHFE 1203 copper contracts.    
 

Key Words:  copper morning review