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.
Copper is trading at 311 cents per pound as traders lock in their profits from last week’s rally ahead of the tonight’s manufacturing report. The HSBC manufacturing PMI for China has been in contraction territory for the past four months, and the consensus is for a reading of 48.4. The official report compiled by Beijing is still showing a small expansion in manufacturing, but some traders place more stock in the HSBC survey.
Copper was rangebound between 300 and 310 cents per pound for a number of weeks, and after finally breaking out of it to the upside we have now pulled back.
If the figures are poor we could drop below the 310 cents per pound mark. On the upside copper could target the 314 level if the report exceeds estimates.