Residual strength in Asian copper prices overnight suggests for many traders that copper was very happy to see the Chinese lower bank reserve requirements yesterday. The fact that Shanghai prices were able to rally today after the very large US rally yesterday may suggest that copper prices had already factored in a very dismal global macro economic condition. While the copper market may have indicated disappointment with Chinese economic data overnight, prices may find some support from expectations of favorable US scheduled data. The official Chinese Purchasing Managers index during November was 49.0, a 1.4 decline from October's levels and a possible early signal of weaker Chinese industrial copper demand during the next few months.
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