SHANGHAI, Mar. 12 (SMM) –Last Friday, private creditors in Greece approved the bond swap deal, averting an immediate risk of a messy default. However, Moody's and Fitch made announcement that Greece was in default, spurring investors to conduct profit-taking to the euro which dived by 1.2%. LME copper price trends were restricted as a result during early US and European trading session. Nevertheless, the US later announced nonfarm payrolls in February increased for a third consecutive month, leading US equity markets to close higher. LME copper prices therefore gained the rising momentum and reached a high of USD 8,526/mt after breaking resistance at USD 8,500/mt. Finally, LME copper prices closed at USD 8,494/mt, a strong gain of nearly 1.9%, moving above all the recent moving averages.
Asian markets will continue to absorb last Friday's positive data, while warns of Greece from Moody's and Fitch will impose pressures. Combined with absence of substantive buying support, LME copper will have limited upside room, with prices expected between USD 8,430 -8,530/mt during today's Asian trading session. Chinese stock markets are expected to open higher. SHFE copper prices will meet resistance at RMB 61,000/mt following a high open, and will test support at moving averages, while SHFE 1206 copper contract prices will fluctuate in the RMB 60,000-61,000/mt range. Spot copper offers are estimated between discounts of negative RMB 80/mt and premiums of positive RMB 20/mt versus SHFE 1203 copper contract, similar with last Friday.