The copper market recovered from overnight pressure and is posting moderate gains during Tuesday's early trading action. Asian copper prices were weaker overnight as some trader were hopeful of Chinese easing, while the copper market may have found some support from the recent developing pattern of declining daily LME copper stocks. The prospect for tighter copper supply was offset by comments from a UK bank, which suggested copper stocks within China may be substantially higher than levels seen last month. Perhaps the most significant factor operating in copper's favor this morning is that US stocks early today have reached their highest levels since April 2nd. While copper and other physical commodity markets would benefit from additional central bank easing activity, it is possible that copper may need a positive reading on US Retail Sales this morning in order to hold onto today's early gains.
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