Copper yesterday traded with the negative node and settled -0.07% down at 426.40 as investors shrugged off concerns over the global economic outlook and focused on growing expectations for further monetary easing by central banks. The US ISM said that its PMI fell by 3.8 point to 49.7 vs 53.5 in May, the first contraction since July 2009. The data fuelled speculation that the Fed may implement a QE3, to shore up growth in the US economy, which has been hit by the ongoing crisis in the euro zone. In the euro zone, the final reading of the bloc's mfg index came in at 45.1 in June, holding steady at its lowest level since June 2009. Investors were looking ahead to the outcome of the ECB's monetary policy meeting, amid growing expectations for a rate cut. Meanwhile, in China, a government report showed that Chinese mfg activity grew at its slowest pace in seven months in June, as new export orders tumbled to lows hit in March 2009. Also China can cut it's banks' reserve requirements as slowing inflation gives more room for easing to stabilize growth. A deeper slowdown in China, would impair a global expansion that is already faltering because of the euro zone's debt crisis. For today's session market is looking to take support at 424.2, a break below could see a test of 422 and where as resistance is now likely to be seen at 430.6, a move above could see prices testing 434.7.

Trading Ideas:

Copper trading range for the day is 422-434.8.

Copper settled flat but downside was limited as anticipation of looser monetary policy from central banks in bolstered confidence.

IMF urged the United States to quickly remove the uncertainty over the path of fiscal policy

Hints that China may ease lending rules boosts prices