LME Copper recovered from the three year lows as investors turned on
to buy for bottom fishing. LME 3-month copper is 1.1% higher at $
6745.25 per tonne. Copper's recent losses were overdone. The market
should remain supported by the recent stoppage at Freeport-McMoRan
Copper & Gold Inc. (FCX) Grasberg mine in Indonesia, he says.
Although open pit mining at Grasberg has resumed, it will take a while
for output to fully ramp-up.The euro edged higher against the dollar on Monday after officials from the Federal Reserve downplayed market concerns over prospects of an end to the central bank's easing policies. Dallas Fed President Richard Fisher also downplayed market jitters over tapering as overdone.
Spain sold EUR930 million of three-month bonds at average yield of 0.86%, up from 0.33% previously and EUR2.14 billion of nine-month bonds at an average yield of 1.44%, up from 0.78%. Italy auctioned EUR3.5 billion of two-year bonds at an average yield of 2.4%, up from 1.1% previously.
MCX Copper June expiry was trading at Rs 403.25 per kg, up 0.61 percent. The markets tested a high of Rs 404.9 per kg and a low of Rs 393.3 per kg. The prices are expected to find stiff resistance at Rs 405 per kg as they move up. Inventories of Copper gave a sigh of relief to the investors as they moved down by 3375 tonnes to 674850 tonnes.
Source by Commodity Insights
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