The copper market may have surprised some traders with yesterday's rally but prices are giving back some of those gains this morning. The copper market was thought to have found strong support yesterday from news of labor tensions at Chile's Escondida facility. Shanghai copper prices were higher overnight but that action may have been that market playing "catch up" to the US rally on Tuesday rally. The fundamental news from China was widely seen as negative overnight, with the marker receiving projections that high copper prices may dampen Chinese demand over the next two months. While the US markets will react to the Durable Goods and Midwest Manufacturing index data this morning, the political dialogue from Washington on the debt ceiling issue could become the main market factor over the upcoming three trading sessions. With September copper prices at this morning's highs, sitting roughly 62 cents a pound above the May lows, some traders are suggesting that copper has already priced-in some form of default-avoiding agreement from the US. LME Copper Stocks were 469,800 tons, up 700 tons.
Join the Discussion