The Federal Reserve of the United States released its latest policy meeting minutes on Wednesday, once again strongly suggesting its readiness to take new measures to promote the recovery of the US economy. The minutes show that unless the US economic growth significantly accelerates, stimulus measures need to be implemented quickly. The strong release of the QE3 signal will to some extent boost copper prices.

Copper price analysis and prediction

Yesterday's Federal Reserve minutes showed that unless there are significant signs of improvement in the US economy, a new round of monetary stimulus policies will soon be introduced. This suggestion has gradually increased market optimism, suppressing the US index's further decline and boosting copper prices; However, from the perspective of the eurozone, the situation in Greece is not optimistic. In the continued weakness of the eurozone, the market will be further tested, and the space for copper prices to rise is limited. At present, the market is paying attention to China's August HSBC PMI data at 10:30 am this morning, as well as manufacturing data for the eurozone and Germany in August later.

Market trend analysis

1、 On August 22nd, the latest inventory of LME copper in the international market was 234175 tons, a decrease of 325 tons compared to the previous trading day; Due to the announcement in the minutes of the Federal Reserve meeting that QE3 may be launched in September, the US dollar broke the limit and fell. London Metal Exchange (LME) three month copper ended higher in the Asian session, rising $10 to $7595 per session; From a trend perspective, boosted by the launch of QE3 signals, short-term copper prices have shown a strong upward trend.

2、 The domestic futures of Shanghai Copper (55650460.00, 0.83%) opened high and closed higher yesterday, with the rebound mainly driven by the active departure of bears, while the enthusiasm of bulls to follow the trend is still insufficient; Today, the main month Shanghai Copper 1211 contract opened at 55540, up 210, while the current month 1209 contract opened at 55780, up 160; The expected easing of the Federal Reserve and the upgrading and renovation of some factories by Jinchuan Company, as well as plans to purchase more copper, have contributed to the rise in domestic copper prices, with Shanghai copper following the trend.

3、 Yesterday, the spot market saw a slight decline in copper premium. The Yangtze River market quoted a premium of 300 yuan/ton to a premium of 350 yuan/ton, while the Shanghai market traded a flat copper price of 55830-55880 yuan/ton and a premium copper price of 55880-55950 yuan/ton. Yesterday, the overall supply of copper was abundant, and in the afternoon, the premium for good copper trade narrowed slightly, but the quotation remained firm. Downstream sentiment of fear of high prices increased, and transactions were mostly made by intermediaries.

Hot topics in financial information

The Federal Reserve (Fed) released the minutes of its August Open Market Committee (FOMC) meeting on Wednesday (August 22), which showed that unless there is a significant improvement in the economy, the Fed may "quickly" launch a new round of monetary stimulus policy. The meeting minutes show that multiple members believe that further easing of monetary policy will soon prove reasonable unless future information directly points to economic recovery.

2. After the July NAR quarterly adjustment in the United States, the annualized monthly rate of existing home sales increased by 2.3% and the annualized rate increased by 10.4%; The total number of households has been annualized to 4.47 million, with an expected 4.5 million households. The annualized total sales of completed homes were slightly lower than expected, but slightly higher than last month, indicating a slight increase in US housing