Reuters reported that London copper edged down after surging to a one week high in the prior session although signals top consumer China will step up efforts to stabilize its economy is expected to put a floor under prices.

Fundamentals;
1. Three month copper on the London Metal Exchange inched down 0.3% to USD 7,674.50 per tonne by 0115 GMT after rising 1.9% in the previous session. Prices hit a one week top at USD 7,730 on Friday.

2. The most active October copper contract on the Shanghai Futures Exchange rose 0.5% to CNY 56,020 per tonne catching up with London's previous gains.

3. China's Premier Mr Wen Jiabao said that efforts to stabilize the economy are working and the government will step up efforts in the H2 of the year to increase policy effectiveness and foresight, raising hopes of more aggressive investment spending by Beijing.

4. This was after Friday's China GDP data showing an annual growth of 7.6 percent in the Q2 in line with market estimates. But China's growth rate had slowed for a sixth successive quarter to its slackest pace in more than three years, highlighting the need for more policy vigilance from Beijing.

5. Hedge funds and money managers increased their net short position in copper by 3,064 to 4,813 contracts in the United States in the week to July 10th 2012.

6. US consumer sentiment cooled again in early July to its lowest level in seven months as Americans took a dim view of their finances and job prospects.

7. Italian banks came to the rescue on Friday after the country suffered a ratings downgrade, but while Rome cut its 3 year borrowing costs at auction, a rise in 10 year bond yields highlighted concern it may fall victim to Europe's debt crisis.

Source - Reuters

(www.steelguru.com)