As with other precious metals markets, copper has entered the new trading week under pressure as fear of a trade war between the US and China and anxiety between China and Japan were widely seen to be weighing on prices. Adverse currency market action, weaker industrial commodity prices action and lower equities may also be negative factor for copper early this week. Asian copper prices may have found fresh pressure from concerns of further limits on Chinese property investment.
Some traders feel that the copper market may needs to see signs of additional stimulus from China and/or fresh easing moves from the European Central Bank to rekindle last week's prices strength. While weaker US data has recently been seen as providing support for physical commodity prices, seeing the Fed take action last week could mean that soft data this week may in fact become a negative factor for the market. LME Copper Stocks were at 216,700 tons for a decline of 475 tons, and have declined in 15 of the last 20 trading sessions.
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