SHANGHAI, Mar. 26 (SMM) – Optimism from Cyprus’s agreement with its international creditor on EUR 10 billion in bailout funds is fading. Cyprus will close its second largest bank and levy tax on the country’s depositors without assurance in exchange for bailout funds. Head of the Eurogroup of eurozone finance ministers Jeroen Dijsselbloem has spooked global markets by saying the Cyprus bank restructuring deal should be considered a template for the rest of the single currency bloc. European stock market shed 0.3% and US stock market closed with losses, with the euro falling below 1.29. Economic indicators announced by the US overnight, though upbeat, failed to boost market sentiment. Investors are now eyeing PMI from China due early next week and durable goods orders from the US. LME copper inventories surged again, sending LME copper down to USD 7,606/mt. Finally, LME copper closed USD 36/mt lower at USD 7,632/mt.
Markets are awaiting economic data from the US due tonight. Remarks from Eurogroup Chairman Jeroen Dijsselbloem have dampened market sentiment. LME copper should move within USD 7,620-7,680/mt during the Asian trading session on Tuesday. The Shanghai Composite Index will test support at the 60-day moving average, and SHFE 1307 copper contract prices should move in the band of RMB 55,500-56,000/mt after a slightly low opening. In spot markets, cargo holders will be eager to sell for cash at the quarter’s end, but downstream producers will be cautious about buying, causing spot copper premiums to narrow to RMB 0-100/mt.