Investing.com - Copper futures inched lower during European morning trade on Monday, as fears over a slowdown in global growth and broad concerns over the ongoing sovereign debt crisis in the euro zone weighed on appetite for riskier assets.
Hopes for near-term stimulus from top consumer China supported the market and limited losses.
On the Comex division of the New York Mercantile Exchange, copper futures for September delivery traded at USD3.311 a pound during European morning trade, easing down 0.15%.
The September contract traded in between a range of USD3.341 a pound, the daily high and a session low of USD3.305 a pound. Prices touched USD3.256 a pound on Friday, the lowest since June 4.
Copper prices came under heavy selling pressure late last week after concerns over the health of the global economy intensified following data showing weak U.S. manufacturing activity, a shrinking Chinese factory sector and slowing business activity across the euro zone.
Copper is sensitive to the global economic outlook because of its widespread uses in construction and manufacturing.
But prices found some support Monday after state-run newspaper China Securities Journal reported earlier that Beijing may take measures to boost liquidity and lending to support growth in the world’s second largest economy.
China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Meanwhile, investors remained cautious ahead of a European Union summit due to begin later in the week, amid hopes progress on greater fiscal integration and allowing the bloc's rescue funds to buy government debt.
Reports said over the weekend that Greece’s Prime Minister Antonis Samaras and Finance Minister Vassilis Rapanos will not attend the summit due to health issues.
The debt-strapped country will reportedly present a plan at the summit that includes tax cuts and a request for more time to lower its debt levels.
Elsewhere, Spain's government made a formal request for aid for its banking sector earlier in the day, after reports on Thursday indicated that Madrid would need a rescue package of as much as EUR62 billion.
Europe as a region is second in global demand for the industrial metal. Prices have tracked investor sentiment toward the euro zone’s debt crisis in recent months.
Copper prices have been on a rapid decline since the start of May, losing nearly 14% amid growing fears over an escalating debt crisis in the euro zone and a deeper-than-expected slowdown in China.
A deeper slowdown in China, the world’s second biggest economy, would impair a global expansion that is already faltering because of debt crisis in the euro zone.
Elsewhere on the Comex, gold for August delivery eased up 0.15% to trade at USD1,569.15 a troy ounce, while silver for September delivery added 0.2% to trade at USD26.78 a troy ounce.
Hopes for near-term stimulus from top consumer China supported the market and limited losses.
On the Comex division of the New York Mercantile Exchange, copper futures for September delivery traded at USD3.311 a pound during European morning trade, easing down 0.15%.
The September contract traded in between a range of USD3.341 a pound, the daily high and a session low of USD3.305 a pound. Prices touched USD3.256 a pound on Friday, the lowest since June 4.
Copper prices came under heavy selling pressure late last week after concerns over the health of the global economy intensified following data showing weak U.S. manufacturing activity, a shrinking Chinese factory sector and slowing business activity across the euro zone.
Copper is sensitive to the global economic outlook because of its widespread uses in construction and manufacturing.
But prices found some support Monday after state-run newspaper China Securities Journal reported earlier that Beijing may take measures to boost liquidity and lending to support growth in the world’s second largest economy.
China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Meanwhile, investors remained cautious ahead of a European Union summit due to begin later in the week, amid hopes progress on greater fiscal integration and allowing the bloc's rescue funds to buy government debt.
Reports said over the weekend that Greece’s Prime Minister Antonis Samaras and Finance Minister Vassilis Rapanos will not attend the summit due to health issues.
The debt-strapped country will reportedly present a plan at the summit that includes tax cuts and a request for more time to lower its debt levels.
Elsewhere, Spain's government made a formal request for aid for its banking sector earlier in the day, after reports on Thursday indicated that Madrid would need a rescue package of as much as EUR62 billion.
Europe as a region is second in global demand for the industrial metal. Prices have tracked investor sentiment toward the euro zone’s debt crisis in recent months.
Copper prices have been on a rapid decline since the start of May, losing nearly 14% amid growing fears over an escalating debt crisis in the euro zone and a deeper-than-expected slowdown in China.
A deeper slowdown in China, the world’s second biggest economy, would impair a global expansion that is already faltering because of debt crisis in the euro zone.
Elsewhere on the Comex, gold for August delivery eased up 0.15% to trade at USD1,569.15 a troy ounce, while silver for September delivery added 0.2% to trade at USD26.78 a troy ounce.