Copper yesterday traded with the negative node and settled -0.74% down at 412 in the line of expectation as ongoing concerns over the health of the global economy reduced the appeal of growth-linked assets. The report came after data on Friday showed that Chinese exports grew just 1.0% on the year in July, down sharply from the 11.3% gain seen in June, while imports rose 4.7% y-o-y, down from 6.3% in June. China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year. A deeper slowdown in China would impair a global expansion that is already faltering because of the euro zone’s ongoing debt crisis. The industrial metal is sensitive to the global economic outlook because of its widespread uses in construction and manufacturing. Prices remained supported amid ongoing expectations that central banks in the U.S., Europe and China will soon announce additional stimulus measures to help spur growth in their respective economies. The Fed has said it stands prepared to intervene while ECB President has said monetary policy officials will do whatever it takes to bolster the economy. There are also expectations in the market that China will cut its banks’ reserve requirement ratio following the release of a flurry of mostly downbeat data last week. For today's session market is looking to take support at 410.4, a break below could see a test of 408.8 and where as resistance is now likely to be seen at 414.5, a move above could see prices testing 417.1.

Trading Ideas:

Copper trading range for the day is 408.8-417.

Copper dropped as persistent concerns about faltering health of the global economy weighed on prices

A deeper slowdown in China would impair a global expansion that is already faltering because of euro zone’s crisis

There are expectations that China will cut its banks’ RRR following the release of downbeat data last week