COMEX Copper plunged as weak global economic cues and sliding US equities hurt the metal. US stocks saw heavy selling pressure yet again amid worries over economic front. The US President Donald Trump announced a new series of economic sanctions on Cuba. This also hurt the market mood. DOW tanked near seven week low. COMEX Copper tumbled under $3 per ounce and marked a 4% cut to test one month low.
IHS Markit said its flash US Composite PMI Output Index eased to 54.4 this month from 54.6 in August. A reading above 50 indicates growth in private sector output. Though the private sector continues to expand, the dip in the index reflects that the economy’s momentum was moderating.
The Euro area private sector stagnated in September as rebound faltered, flash survey data from IHS Markit showed Wednesday. The composite output index dropped to 50.1 in September from 51.9 in August. The PMI has indicated a near stalling of the economy as rising infection rates and ongoing social distancing measures curbed demand.
Japan manufacturing sector continued to contract in September, with a manufacturing PMI score of 47.3, the latest survey from Jibun Bank revealed. Australia’s private sector recovered at the end of the third quarter after the coronavirus containment measures were loosened in parts of the country, flash survey data from IHS Markit showed Wednesday. The flash composite output index rose to 50.5 in September from 49.4 in August.
Base metals on both SHFE and LME declined across the board in early trading of Thursday as the US dollar index, which measures the greenback against a basket of its peers, returned above 94 overnight to its highest in more than eight weeks, posting a four-day winning streak. US manufacturing purchasing managers’ index (PMI) came in at 53.5 in September, hitting a fresh high in 20 months, the latest manufacturing activity survey from IHS/Markit research showed on Wednesday. Glencore said its Democratic Republic of Congo subsidiary Kamoto Copper Company (KCC) is ramping up to full production and should produce 270,000 tonnes of copper as cathode in 2020. U.S.-China tensions will likely have an impact on metals markets going forward
TREND : BEARISH
Time : 24/09/2020
Pivot : 2.9743
Technical View : LONG ABOVE 2.9935
Target : 3.0218, 3.0827, 3.1266
Technical View : SHORT BELOW 2.9437
Target : 2.9131, 2.8701, 2.8082