The copper market has posted moderate gains early in today's session and has added to the recovery action seen in the prior trading session. Positive sentiment from the Chinese stock market, renewed optimism towards the Euro zone and a noted decline in Shanghai copper stocks for the week is widely thought to have provided additional support for the copper market.
Some traders feel that copper may have overcome a very significant drop in US durable goods figures and for the time being, the market seems to be more accepting of a positive macro economic outlook as further gains in equities are likely to provide a lift to copper and other physical commodity prices.
Shanghai copper stocks on the week declined by 4,282 tons and in the current environment, many traders feel that declining stocks levels may signal positive demand for copper in China. While US equities are trading around both sides of unchanged this morning, the price action of stocks is likely to have a noted impact on copper prices later today after US economic data has been factored into prices.
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