SHANGHAI, Jan. 20 (SMM) – China's GDP grew slowly at 7.3% on year in the final quarter of 2014, though the figure came in slightly higher than the 7.2% expected. Other economic releases largely matched forecasts. How are these economic indicators affecting near-term copper market?
“The Chinese economic data were basically in line with market predictions, and the fears triggered by a slump in stock index futures eased following a rebound today. That, plus the uncertainty surrounding euro zone economy and waning trades in China before the Chinese New Year holiday, may leave copper prices consolidating in the short term,” an analyst from Dayou Futures told SMM.
“The GDP data announced today were a sign that Chinese economy was not as pessimistic as many had expected, so we see brief rebound in the near term which will bring the prices near the 10-day moving average,” an analyst from Jingyi Futures said in an interview.
“That said, we believe copper prices will remain on the way down for the long run considering languishing consumption in China and sharp rise in copper output this year,” the analyst added, though.
Analyst from CPI Xianrong Futures also expects copper prices to remain range-bound, noting that although China’s Q4 GDP rise fell to a 24-year low, the result is somewhat within expectation, meaning the market will not be significantly affected.
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