July copper prices have spent almost the entire overnight session in negative territory, with some traders concerned about the prospect of even more slowing from China, while other traders pointing towards ongoing trouble in Spain and impending elections in Greece as a key negative factor for prices. It is also possible that a recent pattern of daily increases for LME copper stocks is being seen as a negative factor for copper prices, especially with sluggish Asian copper prices and little in the way of fresh Chinese easing measures on the near term horizon. However, partially supportive currency market action and initial gains for European and U.S. equities could provide some measure of support for copper prices against any aggressive downside market action this morning. Many traders remain fearful of Spanish and Greek issues ahead, with the election in Greece probably gaining additional importance towards the end of this week.
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