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Mtechtips Copper

Mtechtips Copper

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Published by MtechTips
1.Copper hits 5-week low on Fed uncertainty, China growth concerns
Copper futures fell sharply to hit a five-week low on Tuesday, as uncertainty over the direction of U.S. monetary policy and lingering concerns over China’s economic outlook weighed on demand for the industrial metal. On the Comex division of the New York Mercantile Exchange, copper futures for July delivery traded at USD3.206 a pound during European morning trade, down 1.1% on the day. New York-traded copper prices fell by as much as 1.2% earlier in the session to hit a daily low of USD3.203 a pound, the weakest level since May 3. Speculation that the Federal Reserve will begin to taper its asset purchase program continued following last week’s upbeat U.S. jobs data and after ratings agency Standard & Poor’s revised its long-term outlook on the U.S. credit rating to stable from negative on Monday, citing an improving economic outlook. Meanwhile, investors continued to digest China’s weak trade data over the weekend, which pointed to slowing demand from the world’s largest copper consumer. China’s industrial output rose by a less-than-forecast 9.2% in May from a year earlier. A separate report showed that Chinese exports rose at the slowest pace in almost a year in May, up 1%, well below expectations for gains of 7.3%.
2.Commodity to watch out for the day: Copper
Chinese may be holidaying and futures markets in China may be closed for the day; but that would not deter movements in base metals from gaining momentum as data releases await. Given that Chinese markets are closed, the futures would be hyper-sensitive to data from other parts of the globe. Investor caution is advised in this regard. With the investors expecting industrial production and manufacturing production from UK to be released sometime around 03.00 PM IST, Pound Sterling and Euro have appreciated against Dollar, which may lend some upside to base metals as the day progresses. However if the data fails to trump the estimates, the situation may reverse favoring US Dollar and would possibly erase gains in commodities like copper. The manufacturing production data is a measure of difference in the total inflation-adjusted value of output from manufacturers in UK. The segment of manufacturing accounts for 80% of total industrial production and thus have a bearing on base metals.
3.MCX Copper positive; resistances 424 and 427
Copper futures for June delivery on India's Multi Commodity Exchange (MCX) is positive and traders are advised remain cautious while taking positions as Indian rupee is exhibiting high volatility.“Resistance for the base metal is seen at 424, once it breaches the same then the commodity may touch 427 level,” said Tarang Parmar, Research Analyst at Commodity Online.“Support for the base metal is seen at 417.5 and 415 levels,” he added.MCX copper for June delivery was seen trading down by 0.37% at Rs.415.35 per kilogram as of 02.16 PM IST on Tuesday.LME copper recorded a alight up-tick on concerns that the production disruption at Freeport-McMoRan Copper & Gold Inc. (FCX)’s Grasberg mine in Indonesia may cut copper output. The mine is expected to remain shut till the Indonesian government gets report on the tunnel mishap that killed 28 people on May 14. Copper futures on Globex platform of Comex for July delivery was seen trading down by 1.03% at $3.207 per pound as of 02.28 PM IST on Tuesday.
1.Copper hits 5-week low on Fed uncertainty, China growth concerns
Copper futures fell sharply to hit a five-week low on Tuesday, as uncertainty over the direction of U.S. monetary policy and lingering concerns over China’s economic outlook weighed on demand for the industrial metal. On the Comex division of the New York Mercantile Exchange, copper futures for July delivery traded at USD3.206 a pound during European morning trade, down 1.1% on the day. New York-traded copper prices fell by as much as 1.2% earlier in the session to hit a daily low of USD3.203 a pound, the weakest level since May 3. Speculation that the Federal Reserve will begin to taper its asset purchase program continued following last week’s upbeat U.S. jobs data and after ratings agency Standard & Poor’s revised its long-term outlook on the U.S. credit rating to stable from negative on Monday, citing an improving economic outlook. Meanwhile, investors continued to digest China’s weak trade data over the weekend, which pointed to slowing demand from the world’s largest copper consumer. China’s industrial output rose by a less-than-forecast 9.2% in May from a year earlier. A separate report showed that Chinese exports rose at the slowest pace in almost a year in May, up 1%, well below expectations for gains of 7.3%.
2.Commodity to watch out for the day: Copper
Chinese may be holidaying and futures markets in China may be closed for the day; but that would not deter movements in base metals from gaining momentum as data releases await. Given that Chinese markets are closed, the futures would be hyper-sensitive to data from other parts of the globe. Investor caution is advised in this regard. With the investors expecting industrial production and manufacturing production from UK to be released sometime around 03.00 PM IST, Pound Sterling and Euro have appreciated against Dollar, which may lend some upside to base metals as the day progresses. However if the data fails to trump the estimates, the situation may reverse favoring US Dollar and would possibly erase gains in commodities like copper. The manufacturing production data is a measure of difference in the total inflation-adjusted value of output from manufacturers in UK. The segment of manufacturing accounts for 80% of total industrial production and thus have a bearing on base metals.
3.MCX Copper positive; resistances 424 and 427
Copper futures for June delivery on India's Multi Commodity Exchange (MCX) is positive and traders are advised remain cautious while taking positions as Indian rupee is exhibiting high volatility.“Resistance for the base metal is seen at 424, once it breaches the same then the commodity may touch 427 level,” said Tarang Parmar, Research Analyst at Commodity Online.“Support for the base metal is seen at 417.5 and 415 levels,” he added.MCX copper for June delivery was seen trading down by 0.37% at Rs.415.35 per kilogram as of 02.16 PM IST on Tuesday.LME copper recorded a alight up-tick on concerns that the production disruption at Freeport-McMoRan Copper & Gold Inc. (FCX)’s Grasberg mine in Indonesia may cut copper output. The mine is expected to remain shut till the Indonesian government gets report on the tunnel mishap that killed 28 people on May 14. Copper futures on Globex platform of Comex for July delivery was seen trading down by 1.03% at $3.207 per pound as of 02.28 PM IST on Tuesday.

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Published by: MtechTips on Jun 11, 2013
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MTECHTIPS
1.Copper hits 5-week low on Fed uncertainty, China growth concernsCopper futures fell sharply to hit a five-week low on Tuesday, as uncertainty
over the direction of U.S. monetary policy and lingering concerns over China’s
economic outlook weighed on demand for the industrial metal. On the Comexdivision of the New York Mercantile Exchange, copper futures for July deliverytraded at USD3.206 a pound during European morning trade, down 1.1% on theday. New York-traded copper prices fell by as much as 1.2% earlier in thesession to hit a daily low of USD3.203 a pound, the weakest level since May3. Speculation that the Federal Reserve will begin to taper its asset purchase
program continued following last week’s upbeat U.S. jobs data and after ratings
agency St
andard & Poor’s revised its long
-term outlook on the U.S. credit rating
 
to stable from negative on Monday, citing an improving economicoutlook.
Meanwhile, investors continued to digest China’s weak trade data over
the weekend, which pointed to slowing dem
and from the world’s largest copper
consumer.
China’s industrial output rose by a less
-than-forecast 9.2% in Mayfrom a year earlier. A separate report showed that Chinese exports rose at theslowest pace in almost a year in May, up 1%, well below expectations for gainsof 7.3%.2.Commodity to watch out for the day: CopperChinese may be holidaying and futures markets in China may be closed for theday; but that would not deter movements in base metals from gainingmomentum as data releases await. Given that Chinese markets are closed, thefutures would be hyper-sensitive to data from other parts of the globe. Investorcaution is advised in this regard. With the investors expecting industrialproduction and manufacturing production from UK to be released sometimearound 03.00 PM IST, Pound Sterling and Euro have appreciated against Dollar,which may lend some upside to base metals as the day progresses. However if the data fails to trump the estimates, the situation may reverse favoring USDollar and would possibly erase gains in commodities like copper. Themanufacturing production data is a measure of difference in the total inflation-adjusted value of output from manufacturers in UK. The segment of manufacturing accounts for 80% of total industrial production and thus have abearing on base metals.3.MCX Copper positive; resistances 424 and 427Copper futures for June delivery on India's Multi Commodity Exchange (MCX) ispositive and traders are advised remain cautious while taking positions as
Indian rupee is exhibiting high volatility.“Resistance for the b
ase metal is seen
at 424, once it breaches the same then the commodity may touch 427 level,”said Tarang Parmar, Research Analyst at Commodity Online.“Support for thebase metal is seen at 417.5 and 415 levels,” he added.MCX
copper for Junedelivery was seen trading down by 0.37% at Rs.415.35 per kilogram as of 02.16PM IST on Tuesday.LME copper recorded a alight up-tick on concerns that the

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