Friday, 03 April 2015 11:51

Copper May Gain on Strengthening Euro Economy

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Copper prices are expected to gain on improved euro trade balance. According to European Central Bank the seasonally adjusted current account of the euro area recorded a surplus of ‚21.3 billion in December2013.This reflected surpluses for goods of ‚14.9 billion,services ‚8.7 billion and the income account‚9.3 billion. Increased export at euro zone may advance metal prices in near term. This was the third consecutive result that came above expectation. Italian trade balance improved to 3.62b from earlier 3.09b.

According to People Bank of China, nation aggregate financing reached near to $425 billion in last month. This may also support metal prices if investment has been made in this metal.

Earlier this week Euro GDP had improved to 0.3% from earlier 0.1%. Italian, French and German GDP also advanced compare to their last performance. Today in inventory release LME cancelled copper warrants of 2875 tons shows increasing withdrawals of the metal.

On Thursday there are manufacturing data releases that may change the metals direction. Positive results may support all industrial metals.

 

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