Copper is trading at 314 cents per pound, up 2.15% on the day as China promises to reform the capital markets with the aim to increase transparency and change the initial public offer system. Traders welcomed the announcement as reforms will help the country open up for business, and the change in policy comes as the Chinese economy is slowing down.
Copper has been trading within 300-310 cents-per-pound over the past two weeks; this news has pushed it out of that range which is a positive sign. The metal is still below the 200-day moving average of 320 cents per pound.
Tonight China will report its latest industrial production fixed-asset investment and retail sales. I suspect it will be difficult for copper to sustain its strong run so if the reports do not meet estimates we could see some profit-taking which may bring it back to 310 cents per pound.