Copper Pares Losses on Soaring Chinese Industrial Profits
Copper opened its first trading session following Christmas holiday with a gap down. The metal fell more than 1% compared to the last close in early Asian trading hours, extending losses on the London Metal Exchange in the previous session amid concerns about demand growth in China.
According to market sources on Friday, President Xi Jinping told a meeting of the Communist Party’s financial and economic leading group that China doesn’t need to meet the 6.5 percent economic growth objective if doing so creates too much risk. Adding to copper’s woes, Chinese government continues a crackdown on soaring house prices and pollution.
However, after falling in early hours in Shanghai, copper pared its losses after the Chinese National Bureau of Statistics on Tuesday announced profits at industrial firms accelerated in November. Industrial profits in China rose 14.5 percent last month from a year earlier to 774.6 billion Yuan ($111 billion), with gains led by advances in coal and metal prices.
LME market will keep closing on Tuesday for Christmas.
Buy Stop at 2.4768, Take profit at 2.5000, Stop loss at 2.4600