Shanghai Futures Exchange copper ended up 0.5 percent at 40,470 yuan ($6,520) a tonne on Thursday as short positions were covered, reversing the prior session's steep decline. "Metals direction will come down to how much the rout has hit broader sentiment in China. Where do the losses sit? Does this shake people's confidence in the economy and make them not spend?" said analyst Dan Morgan at UBS in Sydney. "That will depend on how much longer this goes on for, and whether policy stems the bleeding in share markets and restores confidence."
Strong gains on ShFE overnight and a possible light at the end of the tunnel for Greece had sparked some relief, said an employee at a Chinese metals firm. "And China has kept supporting the stock markets, I feel that confidence is coming back."Markets will also be looking ahead to China trade data next week. China's imports and exports likely declined again in June after grim readings in May, fuelling expectations that more easing may be required. "You don't stand in front of it, you wait to see how the carnage unfolds where the value opportunities are," UBS's Morgan said, adding that nickel looked "the most dislocated" base metal at the moment.
Comments
Comments are closed.