[Cu] SMM Morning Review - 2009/9/4 Copper Market

SHANGHAI, Sept. 4 (SMM) -- LME copper prices continued to rebound improved by rising stock markets and positive economic data from the Europe and the US. LME copper prices closed at USD 6,255/mt, up USD 80/mt, and LME copper inventories increased by 3,400mt, bringing total inventories to 306,350mt. SHFE copper prices are expected to move up today. In early this week, the plunged domestic A-share stock market weighed on commodity markets, but A-shares rebounded significantly by 4.79% yesterday, likely improving market confidence, and the expectations over positive macro economic data stimulated commodities prices to climb.

    As to macro economic data, the US Institute for Supply Management (ISM) announced on Thursday that the non-manufacturing index in August was 48.4, setting a record high since September 2008, with estimated index at 48.0, while the non-manufacturing business activity index was 51.3, higher than 50 for the first time since September 2008. The US Labor Department released on Thursday that the weekly number of initial applications for unemployment benefits in the US dropped to 570,000, with estimated number at 560,000. The four-week average number of applications for unemployment benefits rose to 571,250, while the number was revised to 567,250. In addition, the European Central Bank announced on August 3rd that it remains benchmark interest rate at 1% for four consecutive months. Particular attention should be paid to the upcoming non-farm employment data in the US.

Copyright © 2009, CBI (Shanghai) Co., Ltd. All Rights Reserved.

None of this material may be used for any commercial or public use in any form or means, without the prior written consent of CBI China. For reproduction issue, please contact us by email: metalresearch@cbichina.com or tel:86-21-51550040