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Cuts in interest rates from central banks and optimism towards the US nonfarm payroll report will help improve market sentiment, but the euro will remain weak. Coupled with great resistance at the 60-day moving average, SMM believes LME copper will move between USD 7,670-7,770/mt during Friday's Asian trading session. The Shanghai Composite Index will struggle around 2,200. SHFE copper prices will start flat and then fluctuate around RMB 56,000/mt, with SHFE 1210 copper contract expected between RMB 55,500-56,500/mt. Spot copper offers are estimated between discounts of negative RMB 50/mt and premiums of positive RMB 20/mt versus SHFE 1207 copper contract.
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