Investing.com - Copper futures were higher during European morning hours on Tuesday, as market sentiment continued to be underpinned by hopes that the European Central Bank and the Federal Reserve will soon act to shore up growth in their respective economies.
On the Comex division of the New York Mercantile Exchange, copper futures for December delivery traded at USD3.486 a pound during European morning trade, gaining 0.85%.
Earlier in the day, prices rose by as much as 1.1% to hit a session high of USD3.495 a pound. Prices rose to a one-week high of USD3.499 a pound on Monday.
Copper prices continued to draw support from expectations that the European Central Bank will announce details of measures to help stabilize the region’s sovereign debt markets after its upcoming policy setting meeting on Thursday.
On Monday, ECB President Mario Draghi indicated that he would be comfortable buying bonds with maturities of up to about three years, saying that it would not constitute state financing.
Market sentiment remained upbeat amid growing speculation the Federal Reserve was moving closer to stimulate growth in the U.S. economy, following a speech by Fed Chairman Ben Bernanke last Friday.
Speaking at the Fed’s annual symposium in Jackson Hole, Wyoming, Bernanke said the Fed would act as needed to strengthen the U.S. economic recovery, but stopped short of indicating that a fresh round of stimulus is imminent.
Copper traders were looking ahead to the U.S. Institute for Supply Management’s closely watched report on manufacturing activity later in the day, as well as Friday’s crucial non-farm payrolls data.
The ISM, along with the jobs data, is key to gauging the probability of further easing by the U.S. central bank at its next policy meeting beginning September 12.
Gains were limited amid lingering concerns over the outlook for global growth, after downbeat manufacturing data released Monday shed light on the gloomy state of the global economy.
Manufacturing activity in China fell to the lowest level since March 2009 last month, as new orders slumped in the face of weakening global demand.
China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Meanwhile, in the euro zone, revised date showed that the region’s manufacturing sector contracted for the 13th month in a row in August.
Despite the gloomy global outlook, copper prices have gained almost 6% since touching a low of USD3.288 a pound on August 2.
Elsewhere on the Comex, gold for October delivery rose 0.45% to trade at USD1,692.75 a troy ounce, while silver for December delivery surged 2.6% to trade at USD32.25 a troy ounce.
On the Comex division of the New York Mercantile Exchange, copper futures for December delivery traded at USD3.486 a pound during European morning trade, gaining 0.85%.
Earlier in the day, prices rose by as much as 1.1% to hit a session high of USD3.495 a pound. Prices rose to a one-week high of USD3.499 a pound on Monday.
Copper prices continued to draw support from expectations that the European Central Bank will announce details of measures to help stabilize the region’s sovereign debt markets after its upcoming policy setting meeting on Thursday.
On Monday, ECB President Mario Draghi indicated that he would be comfortable buying bonds with maturities of up to about three years, saying that it would not constitute state financing.
Market sentiment remained upbeat amid growing speculation the Federal Reserve was moving closer to stimulate growth in the U.S. economy, following a speech by Fed Chairman Ben Bernanke last Friday.
Speaking at the Fed’s annual symposium in Jackson Hole, Wyoming, Bernanke said the Fed would act as needed to strengthen the U.S. economic recovery, but stopped short of indicating that a fresh round of stimulus is imminent.
Copper traders were looking ahead to the U.S. Institute for Supply Management’s closely watched report on manufacturing activity later in the day, as well as Friday’s crucial non-farm payrolls data.
The ISM, along with the jobs data, is key to gauging the probability of further easing by the U.S. central bank at its next policy meeting beginning September 12.
Gains were limited amid lingering concerns over the outlook for global growth, after downbeat manufacturing data released Monday shed light on the gloomy state of the global economy.
Manufacturing activity in China fell to the lowest level since March 2009 last month, as new orders slumped in the face of weakening global demand.
China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Meanwhile, in the euro zone, revised date showed that the region’s manufacturing sector contracted for the 13th month in a row in August.
Despite the gloomy global outlook, copper prices have gained almost 6% since touching a low of USD3.288 a pound on August 2.
Elsewhere on the Comex, gold for October delivery rose 0.45% to trade at USD1,692.75 a troy ounce, while silver for December delivery surged 2.6% to trade at USD32.25 a troy ounce.