MARKET TALK: LME Copper Shorts May Cover On US Housing Data

Better-than-expected U.S. housing data Friday may prompt follow-through short-covering this week, as market sentiment on U.S. housing sector, copper demand improves, says Hong Kong-based trader. Adds, market thin today, LME 3-month copper facing resistance at $7,000/ton; last traded at $6,880/ton, +$30 on London Friday PM kerb. U.S. Feb. construction spending rose 0.3% overall, above market expectations, helping market shrug off weaker consumer sentiment, says Investec. Standard Bank says in note, "there are still thought to be a lot of shorts still hanging on in the copper market," backwardation spread on cash to 3-month contracts likely to prompt short-covering.