SMM Morning Review - 2010/2/24 Copper Market

SHANGHAI, Feb. 24 (SMM) -- The US Conference Board announced on Tuesday that the US consumer confidence index in February was 46, much lower than market expectations, setting a record low since April 2009, an indication of the increasing investor pessimistic sentiment with regard to economic recovery, and the US stocks closed down in response on Tuesday. Dow Jones Industrial Average fell by 100.97, and commodities prices generally reported significant declines. In addition, Fitch Ratings on Tuesday downgraded the ratings of Greece's four largest banks to "BBB" from "BBB+", intensifying investor concerns over the debt crisis in Euro zone, and weighing on the euro/US dollar. The US dollar index rebounded on February 23rd, with index closing at RMB 80.837, up 0.316, while LME copper prices slipped as a result, with prices closing at USD 7,120/mt, down USD 190/mt. SMM predicts SHFE copper prices will continue to open low today in view of falling LME copper prices, with special focus on spot consumption.

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