NEW YORK: Comex copper futures traded lower in early activity on some technical selling, spurred on last week's European interest rate cuts, said traders. "We rallied up to 65.40, but it was all technical and now we've just come down," said a floor trader. The active May copper contract was at 63.60 cents a lb, down 0.85 cent, trading between 62.80 to 64.45 cents, while the spot April contract was up at 64.30 cents, up 0.30 cent."It was a technical sell-off, after failing to follow through on an earlier rally," said a trader. "The interest-rate cut caused a bearish H sentiment and it shows how bad business really is in Europe."
Last week, the European Central Bank cut its main refinancing rate to 2.50 per cent from 3 per cent. The nearby resistance level for the May contract is at 66.00 cents while support is at 61.60. Floor traders said stops were at 65.70 and 65.80.
LME warehouse stocks stopped falling, with Friday's report showing stocks rose 1,525 tonnes to 718,475 tonnes, while Comex stocks wereunchanged at 123,352 tons in last Thursday's report. LME three-month copper price lost its upside momentum to drift down $19 to $1,416 a tonne during midsession trading.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.
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