ONE: Copper prices rise to break five-day losing streak
A long-term bullish view from investors has helped the commodity record gains, however, those involved in cfd trading are unlikely to see prices rise significantly due to ample supply in China and a firm US dollar, Reuters reports.
Shanghai's third-month copper futures contract SCFc3 closed up one per cent to 70,510 yuan ($10,624) a tonne, while three-month copper stood at $9,419.50 per tonne.
A Shanghai-based trader told the news provider that those involved with cfd trading should brace themselves for a tightening of monetary policy which will have an impact on copper futures.
"Given the inflationary pressure we are experiencing, one could only expect monetary policy to further tighten, which might pressure copper prices in the second half," the expert added.
Daniel Major, an analyst at RBS Global Banking and Markets, told Bloomberg that Japan's decision to purchase Eurozone debt has supported a broader risk appetite in copper trading.
