Base Metals Preview: COMEX copper hovers at over one-week high

COMEX Copper futures are trading lower in early Asia on Monday following an over 1.5% surge on Friday. The Nasdaq advanced 203.34 points or 0.9 percent to 22,886.07, the S&P 500 climbed 47.62 points or 0.7 percent to 6,909.51 and the Dow rose 230.81 points or 0.5 percent to 49,625.97. For the holiday-shortened week, the Nasdaq shot up by 1.5 percent, the S&P 500 jumped by 1.1 percent and the Dow increased by 0.3 percent. LME Copper inventories continued to edge higher recently, weighing on the red metal. Inventories jumped near 11-month high. Currently, the metal is quoting at $5.83 per ounce, over one-week high. The counter ended last week with a modest gain of 1.10% but down around 1% this month. Chinese copper return from the Lunar New Year holidays to offer a demand push given that economic undertone remains supportive. IMF has recently noted that China?s economy has proved resilient in the face of multiple shocks, boosted by robust exports and fiscal stimulus, and it remains a major driver of global growth.

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