SHANGHAI, Oct. 25 (SMM) – Market players largely exited market before the Fed meeting on Wednesday. PMI from major Eurozone countries, including Germany and France, continued to fall. Based on survey result, the Eurozone is experiencing the worst conditions in three years. Enterprises were forced to sack workers to lower costs, and even the Germany and France are negatively affected by economic sluggishness at other Eurozone countries. The whole euro zone economy is recession. In the US, the US new home sales for September hit a 2.5-year high at were 389,000, but the positive data failed to offset negative impact from market concern over future demand and cautious sentiment before the Fed meeting. In this context, the US stock market continued to fall, weighing down LME copper prices to test USD 7,810/mt to finally closed at USD 7,860/mt.At the tail of the trading, the FOMC announced to keep interest rate unchanged at 0-0.25% until middle 2015 and shall continue to purchase USD 40 billion MBS per month. However, the Fed has no plan to expand QE3, which exerted downward pressure on market.
SMM expects that LME copper prices will move between USD 7,830-7,920/mt during Asian trading hours. SHFE copper 1301 contract will hold between RMB 56,500-57,500/mt and spot discounts over SHFE 1211 contract will be between 100-200/mt.