COPPER MCX TIPS : BUY CMP 606 Add More if Come 600 Target 627. Copper mcx yesterday settled down by 0.14% at 596.55 as euro zone’s economic downturn deepened in January as coronavirus-induced lockdown measures hit the services industry.
However downside seen limited boosted by easing liquidity worries in China and as solid economic data and progress on stimulus in the United States raised hopes of a global economic recovery.
U.S. data showed private payrolls rebounding more than expected in January, while service activities also improved strongly, pointing to signs of a recovery in the world’s biggest economy. Adding to the optimism, the U.S. Congress pushed ahead with a maneuver to pass a $1.9 trillion COVID-19 relief package.
In China, a central bank official said the People’s Bank of China will keep liquidity reasonably ample, easing money supply worries in the world’s top metals consumer.
Meanwhile, a recent coronavirus outbreak in China has dampened the country’s economic activities in January, dragging factory output and service activities growth to multi-month lows.
Yangshan copper premium rose to its highest since August 2020 at $73 a tonne, amid disrupted supplies from top producer Chile.LME cash copper was last at a $10-a-tonne premium over the three-month contract, a level unseen since September 2020, indicating tight supplies of nearby contracts.