This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Copper Pares Losses on China Growth Data

NEW YORK ( TheStreet) -- Copper pared most of its losses after China's National Bureau of Statistics released its growth and inflation data.

Meanwhile, base metals were expected to consolidate with negative bias in Thursday's trading session.

China's economy grew by 10.3% year over year during the second quarter, down from 11.9% during the first quarter. Inflation eased to 2.9% in June compared with 3.1% in May. Analysts reckon that the government measures have paid off signaling a positive course for the economy and base metals.

Events lined up for Thursday include U.S. initial jobless claims, which are expected to come in lower at 445,000 from the prior week's 454,000, continuing claims, expected to come in higher are 4.45 million compared with 4.41 million a week earlier, and industrial production, which is expected to drop to -0.1% in June vs. growth of 1.2% in May.

Copper

Copper for delivery within three months traded at $6,684 at the London Metal Exchange before declining 1.8% to $6,603 per metric ton. Copper inventories maintained by LME fell 0.9% to 428,500 tonnes.

Meanwhile, Rio Tinto (RTP) revealed that refined copper production stood lower by 10% in the second quarter as compared to the same quarter a year ago. Production was primarily dragged down due to ongoing maintenance activities at its facilities. Besides, the company believes that its refined copper production would be 380,000 tonnes for 2010. The metal is expected to trade sideways with support at $6,616 and resistance at $6,712.

Copper producers are trading very close to their resistance levels. Freeport-McMoRan Copper & Gold (FCX - Get Report), which closed at $63.66 in the previous trading session, has support at $62.87, while resistance lies at $64.59 followed by $65.51. Meanwhile, Southern Copper (SCCO - Get Report) closed at $30.07 with support and resistance levels lying at $29.81 and $30.39, respectively.

Aluminum

Aluminum for delivery within three months remained flat at $2,005 a ton in the early hours of trading Thursday at the LME from the previous day's close of $2,009. LME inventories shed 7,650 tonnes to close at 4.38 million tonnes. The metal is expected to trade sideways with support at $1,994 and resistance at $2,008.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
ACH $17.09 1.85%
AA $13.45 1.74%
AWC $4.20 0.48%
FCX $21.82 4.80%
SCCO $31.35 1.33%

Markets

DOW 18,037.97 -42.17 -0.23%
S&P 500 2,108.92 -8.77 -0.41%
NASDAQ 5,060.2460 -31.8390 -0.63%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs