The copper market has started out under pressure today, which some traders feel is due in part to profit-taking long liquidation considering that copper prices this week made a low to high rally of roughly 18 cents a pound. Other traders feel that the copper market may have been undermined by news overnight of a rise in weekly Shanghai copper stocks of 2,787 tons. However, rising weekly Shanghai copper stocks may have been offset by news that daily LME copper stocks overnight declined by 1,600 tons and now stand at 235,550 tons.
Weakness in Asian equity markets and some disappointment over the lack of fresh easing action from the Chinese central bank this week are also felt to be negative factors for the copper markets. While a portion of copper's price gains this week may have been the result of rising US easing prospects, seeing a positive reception for today's US Durable Goods Report may not exert significant pressure on copper prices unless the numbers come in much stronger than the markets; initial expectation of a 2% to 3% gain.