While a number of other commodity markets failed to react positively to news that China would continue to purchase Euro zone sovereign debt, the copper market seemed to benefit from the prospect of an improvement in the Euro zone bailout effort. In addition, news overnight of a sharp increase in Japanese copper exports to China in July may provided an added measure of support to copper prices as well.
However, news that Chinese demand for copper might remain weak over the near-term unless the Chinese central bank provides more assistance to their economy may have weighed on prices. A rather large daily decline of 3,850 tons in LME copper stocks overnight might have provided support to copper prices during early trading today. Copper prices might show some weakness if there is a positive reception for today's economic US data, as that type of news could temporarily reduce US easing prospects.