The copper market posted gains during the overnight session but ultimately turned around and headed lower this morning and fell below the prior session's low. While some traders feel that sentiment toward copper remains somewhat upbeat in China, with Asian copper prices able to post a slight rise overnight, macro economic concerns are beginning to surface again in the Euro zone. Greece is facing a 24 hour general strike and Japanese auto makers are reportedly cutting their auto production in China due to an escalation of tensions between the two nations.
While the negative global macro economic tone may put pressure on copper prices, the market could find support from a positive reception to US New Home Sales data and then again from a speech from the Fed Regional President Evans just after mid day. Copper might be seeing some residual pressure from news late yesterday of another increase in Peruvian copper production for the month of July, as production rose close to 10% above year ago levels.
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