Copper yesterday settled up by 0.34% at 721.15 as China will boost fiscal spending "appropriately" in 2023 to support the slowing economy, focusing on tech innovation and key strategic sectors, the finance ministry said. China's central bank said it will keep liquidity reasonably ample and maintain "effective" credit growth to support economic growth and employment. Monetary policy would be precise and forceful, the People's Bank of China said in a statement after a quarterly meeting of its monetary policy committee.
The central bank said it would strive to stabilize economic growth, employment, and prices, and keep the growth of money supply and total social financing basically in line with nominal economic growth. Copper output in Chile, the world's largest producer of the metal, fell 5.5% year-on-year to 459,229 tonnes in November, the country's statistics agency INE said. The agency said the drop was partly due to lower ore grade and operational problems affecting major companies in the sector. Some copper deposits have also been affected by less water availability, fatal accidents, and maintenance issues. Chile is the world's top copper producer and is home to global giants like Codelco, BHP, Glencore (LON:GLEN) (LON: GLEN ), Anglo American (LON:AAL) (LON: AAL ), Freeport and Antofagasta (LON:ANTO) (LON: ANTO ).
Technically market is under short covering as the market has witnessed a drop in open interest by -2.14% to settle at 4121 while prices are up 2.45 rupees, now Copper is getting support at 718.6 and below same could see a test of 715.9 levels, and resistance is now likely to be seen at 723.2, a move above could see prices testing 725.1.
Trading Ideas:
# Copper trading range for the day is 715.9-725.1.
# Copper gains as China will boost fiscal spending "appropriately" in 2023 to support the slowing economy
# Monetary policy would be precise and forceful, the PBOC said in a statement after a quarterly meeting of its monetary policy committee
# Chile copper production down 5.5% in November