Copper
2009-06-29,Weekly summary 22-26.06.2009
Copper dropped to $4695 per ton at LME as a consequence of bearish statement of World Bank on global recovery. The base metal is very sensitive on any even a little change in investors sentiment according to condition of real economy. Currently, the only China becomes the main driver on base metal markets, but recently it seems as if the biggest copper consumer halted it's interventionist purchases what is clearly visible while copper inventories monitored by Shanghai Stock Exchange rose 13% last week.
Copper rebounded to $4825 from $4695 per ton , according to London quotations in general thanks to weakening of U.S currency. Dollar Index fell nearly 0,6% indicating a bigger appetite investors for commodities.
Copper surged to $4988 per ton in London paring declines of previous week to the lowest level in more than three weeks. Weakening U.S currency also was fueling rally on commodity markets. U.S currency became weak against euro as investors put bets on neutral Fed's decision according to interest rate in the near future. The potential of growth for copper is seen up to $6000 till end 2009.
Copper was continuing its rally to $5070 per ton in London generally on news than U.S economy retreated less than estimated in 1st quarter. Commerce Department stated -5,5% while any projections exceeded 6%. So any better data flowing from real economy shall be used as a excuse for growths.
Copper decreased to $5028 per ton at London Metal Exchange following the sentiment ruling on equity markets. DJI Aver. fell nearly 0,8%. This base metal is strictly tracking equities as a gauge of condition of economy. Moreover the metal retreated nearly 54% in 2008 while Dow Jones went down about 34% in the same period. Copper recorded the first weekly gain (+2,1%) since 14th May as U.S economy showed the first sign of stabilization.
Some tech. levels:
Res.: $5170 - $5350
Sup.: $4950 - $4700
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