SHANGHAI, Apr. 6 (SMM)–Macroeconomic news was mixed Thursday. Italian and Spanish bond yields soared, reigniting market fears over the European debt crisis. In response, the euro fell significantly and helped the US dollar jump to 80 again, which led LME copper prices to come under pressure at the 60-day moving average and reach a high at only USD 8,430/mt. Later, however, the US announced the initial jobless claims recorded a nearly 4-year low last week, providing strong support for LME copper at the bottom end USD 8,300/mt. However, this positive data was also favorable for the US dollar, although market risk appetites improved, causing US equity markets to swing between gains and losses. Investors therefore took a cautious sentiment ahead of the release of the US nonfarm payrolls. Combined with the approach of the Easter holiday, market activity on the financial market was relatively quiet. LME copper prices thus finally ended at USD 8,365/mt after some fluctuations, but the volume of cancelled warrants continued to slide. In other news, spot copper inventories in London were reported to rise sharply Thursday, a rare occurrence recently, which will weigh on copper prices.
LME copper market is closed for the Good Friday today. Chinese stock markets are likely to extend increases following significant rebounds, so SHFE copper prices will stabilize after the opening during today's Asian trading session. Without guidance from LME copper prices, most short and long investors will take a cautious stance, while some long investors will probably make appropriate purchases due to optimism towards the US nonfarm payrolls tonight. SHFE 1207 copper contract prices will move in the RMB 59,500-60,300/mt range. Spot copper discounts are estimated between negative RMB 120-50/mt versus SHFE 1204 copper contracts.