The copper market saw some minimal weakness in prices overnight, with the primary theme in Asia seemingly coming from concerns over softening Chinese copper demand. It is also likely that copper saw some additional pressure from the weak German ZEW readings released this morning. While some traders expect copper prices to benefit from action from the US Fed later this week, the weak European data and the prospect for an ongoing risk-off psychology could mean that copper needs US action just to hold its the rather impressive early June bounce of 9-12 cents a pound. While a portion of the copper trade is fretting over the prospect of slumping Chinese demand, copper prices overnight might have received some minor lift from speculation of some fairly solid Chinese June copper import data ahead. Therefore the trade will be looking ahead to a private Chinese Manufacturing PMI result that will be released tonight. The copper market should also take some noted direction from US housing starts and permits data, but it is unclear whether it wants to see soft numbers that in turn increase the odds of easing, or if it wants to see positive US housing numbers for a direct signal on near term physical demand prospects. LME copper stocks overnight rose by 2,550 tons to stand at 251,675 metric tons.
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