Base Metals Look Lackluster!

Copper is expected to remain lackluster during the morning session on Monday, 16 July 2012 as the slowing growth in China, Europe and US might pressurize the investors.

But the signals that top consumer China will step up efforts to stabilize its economy might cramp the huge losses in the metal. Copper is likely to find support at Rs 423 per kg and Rs 420.6 per kg and resistance at Rs 427.6 per kg and Rs 429 per kg.

Chinas Premier Wen Jiabao affirmed on Sunday that the efforts to stabilize the economy are working and the government will step up efforts in the second half of the year to increase policy effectiveness and foresight, raising hopes of more aggressive investment spending by Beijing.

Copper surged on Friday, 13 July 2012, and rose to a one-week high as data showed Chinas economy grew at its slowest rate in three years in the second quarter, but maintained a pace that is not expected to undermine fragile global growth.

Copper surged near to last weeks high by 3% at $7674 per tonne on Friday at LME. Comex Copper for the most active September contract ended higher by 3% or 9 cents at $3.504 a pound. MCX Copper buoyed 0.8% or Rs 3.3 at Rs 426.2 per kg and tested an intraday high at Rs 427.15 per kg and low at Rs 423 per kg.  [ News Source ]

Posted in: commodity news,market news,trading news