SHANGHAI, Oct. 15 (SMM) – LME three-month copper rose above USD 6,800/mt at a time Tuesday, and closed up USD 61/mt at USD 6,797/mt.

The People’s Bank of China launched RMB 20 billion of 14-day repurchase agreement on Tuesday, with auction rate at 3.4%, down 10 basis points. This lower auction rate was seen as a substitute of interest rate cut, but it also dashed hope for any a blanket rate cut in the short term.

Spokesman of China’s National Development & Reform Commission said the country’s infrastructure investment was still growing rapidly, and expected the decline in fixed asset investment growth to narrow for the rest of the year with government’s mild stimulus producing results.

Euro zone economic data remained poor, with the euro weakening against the US dollar and sterling. Germany’s economic sentiment for October fell to -3.6%, down below zero for the first time since 2013. The euro zone industrial output also declined in August. In response, Germany’s Economy Ministry lowered forecast of the country’s GDP growth this year from 1.8% to 1.2%, and slashed projection for 2015 from 2% to 1.3%, citing geopolitical crisis and slowdown in global growth.

The US dollar index rose but the increase was limited due to market concerns over global recovery. Besides, the US stocks and crude oil both slumped, while gold rebounded.

The most active SHFE copper contract gapped higher at RMB 48,250/mt during Tuesday’s night session, and moved higher before meeting resistance at RMB 48,500/mt. The red metal finished the session up RMB 520/mt at RMB 48,420/mt. Trading volumes of the most active contract rose to 210,000 lots, and positions increased 8,336 lots.

SHFE 1412 copper contract may trade at RMB 47,800-48,500/mt on Wednesday. In China’s spot markets, copper will be offered between a discount of RMB 100/mt and a premium of RMB 20/mt against SHFE 1410 copper contract prices.