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After closing on a higher note for the previous three weeks, the base metals pack ended on a lower note, with copper snapping a four-week winning streak.
To boost the country's sluggish economic recovery, Chinese officials implemented their first lending rate cuts in ten months. However, the cuts were not as extensive as expected.  
The pressure on the metal prices came on the back of a disappointment over the size of interest rate cuts in China, which is a major consumer of these metals.
Shanghai copper prices, on the other hand, reached an eight-month high, boosted by a weaker yuan and an increase in the copper premium in the Chinese spot market.
Copper inventories at monitored Chinese warehouses declined 1.1% this week, but sentiment remained pessimistic due to the lack of any economic stimulus to promote metal demand growth.

OUTLOOK: We expect copper to trade lower towards 713 levels, a break of which could prompt the price to move lower to 708 levels.

 

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