The copper market has risen higher during the early portion of today's trading, with many traders pointing towards the ICSG 2012 global deficit prediction yesterday or modestly higher US equity market action early today as the main sources of support. The copper market may be held back today in the wake of comments from Fed Vice Chairman Yellen who suggested that Asian economic momentum appeared to be waning. Copper prices may also be weighed down by talk that China might not start large-scale stimulus measures until domestic growth falls back below the 7.5% level.
Other traders feel that copper has been pressured by suggestions from a major investment banker that trouble in the Chinese housing market might continue to be a limiting factor for Chinese copper demand going forward. However, a rise in Chinese September copper imports may reduce Chinese copper demand fears and in turn might allow copper to find support from the initial gains in US equities today.
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