copper plummeted, yet again not holding near 27 month high amid weak GDP data globally. Sliding equities also weighed and COMEX Copper fell near 3.02 per pound, down around 1.5% on the day in last session.
The euro area economy contracted less than initially estimated in the June quarter but the pace of drop was the most since the records began in 1995 due to the coronavirus containment measures adopted by the member countries, revised data from Eurostat revealed Tuesday. Gross domestic product fell by a record 11.8% sequentially but this was revised down from -12.1% estimated initially. The annual decline in GDP was revised to 14.7% from 15%. Nonetheless, this was the biggest fall since the series began in 1995 and followed a 3.2% fall in the first quarter of 2020.
Japan’s economy contracted more than initially estimated in the second quarter. The gross domestic product shrank by a record 7.9% sequentially instead of the 7.8% fall estimated initially. On an annualized basis, GDP plunged 28.1% in the second quarter compared to the 27.8% fall estimated earlier.
Shanghai base metals weakened across the board on Wednesday morning, extending overnight losses, and the LME complex also opened lower, as plunged US stocks and oil prices drove up market panic and as Brexit uncertainty boosted US dollar. Chinese inflation data for August released Wednesday morning showed the producer price index (PPI) declined 2% in August from a year earlier, according to China’s National Bureau of Statistics, while the consumer price index in August rose 2.4% as compared with a year ago. Besides, mounting tensions between the US and China also dragged on copper prices. However, LME copper stocks shrank continuously will support copper price.
TREND : WEAK BEARISH
Time : 09/09/2020
Pivot : 3.0111
Technical View : LONG ABOVE 3.0331
Target : 3.0549, 3.0983, 3.1376
Technical View : SHORT BELOW 2.9896
Target : 2.9682, 2.9299, 2.8855