MCX Copper may trade negative; Comex Copper down on weak global cues

by Harrey Martin Financial Adviser

MUMBAI : The trend in copper futures for August delivery on India's Multi Commodity Exchange (MCX) is negative and the base metal is expected to continue with the trend for the day. Intra-day traders are advised to sell at higher levels.

Copper prices on Globex platform of Comex was seen trading negative on weak international cues. Positive data releases from the United States and Europe have failed to lift the commodity prices on Thursday.

Copper futures for September delivery on Globex platform of Comex was seen trading down by 0.02% at $3.179 per pound as of 01.57 PM IST on Thursday.

“For intra-day, support for MCX copper is seen at 414 and 412 levels while resistance is seen at 420 and 423.5 levels,” said Tarang Parmar, Research Analyst at Commodity Online.

MCX copper for August delivery was seen trading down by 0.75% at Rs.416.50 per kilogram as of 01.35 PM IST on Thursday.

On Wednesday, MCX copper prices failed sustain at higher levels due to profit booking and settled down.

Copper prices in the global market recorded a negative trend on Thursday. The decline in the commodity prices was supported by weak Chinese Manufacturing data and concerns over excess supply.

Goldman Sachs Group Inc. said on Wednesday that the global copper surplus may rise to 500,000 tons in 2015 from 257,000 tons this year.

Data on US Jobless Claims and Durable Goods Orders is scheduled to be released by the United States Department of Labor and Census Bureau at 06.00 PM IST today.

United Kingdom (UK) Gross domestic product (GDP) increased by 0.6% in Q2 2013 compared with Q1 2013, as per seasonally a seasonally adjusted data released by the Office of National Statistics.

All four main industrial groupings within the economy (agriculture, production, construction and services) increased in Q2 2013 compared with Q1 2013.

The largest contribution to Q2 2013 GDP growth came from services; these industries increased by 0.6% contributing 0.48 percentage points to the 0.6% increase in GDP.

The Ifo Business Climate Index for industry and trade in Germany rose for the third time in succession. Assessments of the current business situation are more positive than last month. Although the six-month business outlook weakened slightly, firms remain cautiously optimistic with regard to their future business outlook. Conditions in the German economy remain fair.

The Ifo Business Climate Index rose to 106.2, higher when compared to the previous data of 105.9. The German Ifo Business Climate Index rates the current German business climate and measures expectations for the next six months.

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