Base Metals Preview: Solid Recovery In DOW Boosts Copper

A solid recovery in US equities supported COMEX Copper yesterday and the metal extended the gains today as well, following strong cues from Asian equities. COMEX Copper had slipped to a three month low before edging up yesterday and has managed to see some good buying after breaking above the key $ 3 per pound levels. The US markets soared yesterday with the the Dow jumping 669 points n++ its third-biggest point gain in history on signs that the United States and China are talking behind the scenes to avoid a global trade war. COMEX Copper is currently trading at $ 3.01 per pound, up 1.40% on the day. The steady downtick in LME Copper inventories over last one week is also supporting the red metal. MCX Copper futures tumbled under Rs 430 per kg yesterday but should see a quick reversal on strong global cues today.