SHANGHAI, Apr. 22 (SMM) – SHFE 1407 copper contract prices opened at RMB 46,660/mt at night session on Monday and moved narrowly due to a lack of guidance from LME copper. The red metal finally closed the session up RMB 140/mt at RMB 46,640/mt. Trading remained subdued during the night session, while positions for the most active contract increased 3,116 lots.
Deal flows remained limited as European markets were still closed for the Easter holiday.
The Chicago Fed National Activity Index rose in March to 0.20, matching market forecasts, while the Conference Board Leading Economic Index also rose in the month by 0.8%, beating expectations. These positive economic releases showed that the US economic recovery could pick up pace in the foreseeable future. In addition, chip maker AMD posted better-than-expected business performance for the first quarter in 2014, with its shares rising by more than 10% in a single day, helping boost market sentiment. In this context, major three US share indexes all finished higher, with the S&P 500 seeing the longest straight gains since last October.
Meanwhile, Barclays, one of the world’s biggest commodities traders, was reported to exit large parts of its metals, agricultural and energy business in a move expected to be announced officially on Tuesday. Goldman Sachs previously declared to pull out of commodity trading, but Bank of America Merrill Lynch announced later to stick to this type of business.
The US dollar index ended up 0.13%, while the euro fell 0.15% over the US dollar. Major Asian shares closed lower.
On April 22, SHFE copper for July Delivery may move between RMB 46,200-46,700/mt. Copper is expected to be offered at premiums of RMB 750-900/mt against SHFE 1405 copper contract prices in China’s physical market.