Copper prices have posted solid gains this morning, as initial gains seen in Asian copper prices overnight may have triggered an upside breakout for the US copper market. The Asian copper market appeared to have found support from positive price action with Chinese bank stocks, which in turn might have been the result of rising Chinese monetary easing hopes. The copper market also seems to be receiving some additional strength from positively-received US housing data yesterday but that sentiment might be tested later this morning by a private home price survey. The copper market might also be impacted by comments from a Fed official that are expected to be focused on additional assistance for the US housing sector. On the other hand, the copper marker might find some initial pressure from a reading on US Durable Goods which is widely expected to show a decline. Global equities are higher, the Euro is also higher and sentiment toward the Euro zone debt situation is mostly positive this morning, all of which are felt to be supportive for copper prices. LME copper stocks overnight were down 1,625 tons, which puts total stocks below the potentially psychological 300,000 ton level.
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