Copper climbs ahead of Chinese data

Copper is edging higher as traders await both the official and HSBC manufacturing reports from China tonight.

Copper pipes
Source: Bloomberg

Copper is trading at 317 cents per pound and is currently sitting on the 200-day moving average, as traders expect both reports to show that manufacturing in China is in expansion territory.

The flash HSBC reading jumped to a seven-month high last week and analysts are expecting no change between the flash and final reading. Lately, official manufacturing surveys conducted by Beijing have been in expansion territory, but traders typically put a greater emphasis on the HSBC survey.

As I mentioned previously, the Chinese authorities have reduced the amount of capital banks are required in relation to their loan book, and it would appear that this policy has stimulated activity.

It is a positive sign that copper is now just above the 200-DMA. The red metal has encountered resistance at 319 cents per pound in the past, and if the results disappoint traders copper could drift back to 314 cents per pound. 

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.