SHANGHAI, Mar. 27 (SMM) – Economic data announced by the US overnight were mixed. The country’s durable goods orders rose more than expected in February and housing prices posted the biggest growth in more than six years. Lifted by these encouraging figures, the Dow Jones Industrial Average hit a new high and S&P 500 Index was only 1.38 points below its record high. On the other hand, the US consumer confidence index shrank considerably in March and new home sales fell 4.6% in February. Adding to concerns is that the Fitch put Cyprus on rating watch negative on Tuesday. These bearish factors have turned investors away from risky assets. LME copper fell back from high levels, and finally closed at USD 7,642/mt. Trading volumes increased at USD 7,600/mt, making LME copper the only base metal that closed up overnight.
Markets will remain cautious and the euro is under downward pressure. LME copper should try to hold the 5-day moving average and move within USD 7,600-7,660/mt during the Asian trading session on Wednesday. The Shanghai Composite Index will extend losses, while SHFE 1307 copper contract prices should fluctuate in the band of RMB 55,500-56,100/mt. Premiums of spot copper over SHFE 1304 copper contract prices are expected between RMB 30-130/mt.