2 Feb 2015
Copper climbs on China stimulus bets
FXStreet (Mumbai) - Copper prices on Comex recovered from close to six year low levels and climbed higher after disappointing Chinese manufacturing PMI report fuelled speculations over China’s stimulus measures in a bid to spur growth.
Back above USD 2.50/ pound
The red metal trades at USD 2.511/ pound, up 0.72% on the day, close to fresh daily highs posted at 2.516 levels. Copper prices rebounded sharply from daily lows after the number of outstanding contracts on the Chinese bourse rose to a record. Open interest of copper contracts on Shanghai Futures Exchange surged 12 percent last week to a record 952,018, the biggest jump since November, bourse data shows.
Moreover, weaker than expected China PMI data stoked concerns over China’s growth prospect which raised expectations of further stimulus from the world's second biggest economy.
Furthermore, restocking ahead of Chinese New Year and increasing chances of the SRB (State Reserve Bureau) stockpiling the red metal also added to the rally in copper prices.
Copper Technical Levels
Copper prices have an immediate resistance located at 2.518, above which gains could be extended to 2.52 levels. Meanwhile, support is seen at 2.46 levels, below which it can extend losses to 2.44 levels.
Back above USD 2.50/ pound
The red metal trades at USD 2.511/ pound, up 0.72% on the day, close to fresh daily highs posted at 2.516 levels. Copper prices rebounded sharply from daily lows after the number of outstanding contracts on the Chinese bourse rose to a record. Open interest of copper contracts on Shanghai Futures Exchange surged 12 percent last week to a record 952,018, the biggest jump since November, bourse data shows.
Moreover, weaker than expected China PMI data stoked concerns over China’s growth prospect which raised expectations of further stimulus from the world's second biggest economy.
Furthermore, restocking ahead of Chinese New Year and increasing chances of the SRB (State Reserve Bureau) stockpiling the red metal also added to the rally in copper prices.
Copper Technical Levels
Copper prices have an immediate resistance located at 2.518, above which gains could be extended to 2.52 levels. Meanwhile, support is seen at 2.46 levels, below which it can extend losses to 2.44 levels.