Data: SHFE, DCE market movement (Apr 7)

SMM Morning Meeting Summary: Last Friday evening, LME copper opened at $12,124/mt. In early trading, copper prices fluctuated rangebound and climbed to $12,158/mt, after which the center gradually moved lower. Near the close, prices fell to $11,833/mt and finally closed at $11,834.5/mt, down 3.09%. Trading volume reached 27,700 lots, and open interest stood at 293,000 lots, an increase of 4,631 lots from the previous trading day, mainly reflecting increased short positions overall. Last Friday evening, the most-traded SHFE copper 2605 contract opened at 94,510 yuan/mt and climbed to 94,700 yuan/mt at the open. Thereafter, the center of copper prices gradually moved lower, bottoming at 92,820 yuan/mt near the close, and finally closing at 93,540 yuan/mt, down 1.26%. Trading volume reached 88,400 lots, and open interest stood at 202,000 lots, an increase of 1,192 lots from the previous trading day, mainly reflecting increased short positions throughout the day.

US Fed Governor Christopher Waller said on Friday that if signs of weakness emerged in the labor market, he would again support an interest rate cut later this year, while remaining alert to the inflationary pressures that the current geopolitical situation may bring.Waller noted that a closure of the Strait of Hormuz signaled greater inflationary pressure, and that higher oil prices could ultimately affect core inflation. He stressed that the current cautious stance did not mean there would be no action for the rest of the year.His remarks sent an important signal to the market—that the window for an interest rate cut had not closed, provided that employment data showed clear weakening.

According to Xinhua News Agency, the Islamic Republic News Agency reported on the 20th that the Islamic Revolutionary Guard Corps issued a statement saying that, despite extensive attention from Western media, the US Navy aircraft carrier Ford was deployed to the West Asia region but failed to provide support for US forces there and instead withdrew from the battlefield, reflecting the “desperate and humiliating” reality facing the US and Israel.