The copper market extended yesterday's recovery move during overnight trading, and in the process the December copper contract climbed back above yesterday's highs. Asian copper prices were strengthened in the wake of somewhat favorable Chinese economic data, and perhaps copper may have found some additional support from a slightly better than expected German ZEW reading on that nation's economic sentiment. Generally higher international equity market action during overnight trading, mostly higher physical commodity markets and favorable currency market action are also supportive factors for copper.
What may temper the initial strength in copper prices this morning is news of an increase in third quarter production from Rio Tinto, and a forecast of a 200,000 to 300,000 ton copper surplus for 2013 from a key copper mining company. While copper might find some negative impact from reduced easing prospects in the event that US data comes in as expected today, it is also possible that copper could diverge with the precious metals markets today and instead benefit from improved US scheduled data flows.
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