SHANGHAI, Apr. 25 (SMM)– The results of European bond auction were positive on Tuesday, easing market worries over the region's debt crisis to some extent. European stock markets therefore stabilized, and the euro also moved higher, which helped commodity markets rally. In response, LME copper prices stood completely above USD 8,100/mt in the US and European trading session. In the evening, the US announced mixed economic figures, suggesting Consumer Confidence Index fell in April for a second consecutive month. Nevertheless, the US Richmond Fed Manufacturing Index for April and new home sales for March came in positive, so US equity markets swung between gains and losses. The Dow Jones Industrial Average, though, closed above 13,000 and boosted market sentiment. As a consequence, LME copper prices kept stabilizing and climbed to as high as USD 8,162/mt before finally settling at USD 8,118/mt, paring some of the previous session's losses.

Markets will keep cautious since most investors are awaiting the final results of the Federal Reserve meeting. The US dollar will remain weak and probably trend lower. In this context, LME copper prices will challenge highs following stable movements, with prices expected between USD 8,100-8,200/mt during Wednesday's Asian trading session. Chinese stock markets will continue to struggle around the 5-day moving average. SHFE copper prices will fluctuate in a narrow band after a high open, while SHFE 1207 copper contract prices will lurch in the RMB 57,700-58,300/mt band. Spot copper discounts are estimated between negative RMB 70-30/mt versus SHFE 1205 copper contract.