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Copper futures edge lower after China trade data; Fed minutes ahead

Published 04/10/2013, 05:06 AM
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Investing.com - Copper futures eased off the previous session’s two-week high during European morning hours on Wednesday, after data showed that China posted a surprise trade deficit in March.

China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.

On the Comex division of the New York Mercantile Exchange, copper futures for May delivery traded at USD3.434 a pound during European morning trade, down 0.2% on the day.

New York-traded copper prices held in a tight range between USD3.421 a pound, the daily low and a session high of USD3.443 a pound. Comex copper rose to a two-week high of USD3.451 a pound on Tuesday.

Official trade data released earlier showed that China posted a USD884 million surprise trade deficit for March compared with February's USD15.25 billion surplus. Economists had expected a USD15.4 billion surplus.

The data showed that Chinese imports rose 14.1% from a year earlier in March, blowing past expectations for a 6% increase and following a decline of 15.2% in February.

Exports grew 10% from a year earlier in March, below expectations for an 11.7% gain and down from a 21.8% increase in the previous month.

Imports of refined metal, alloy and products were 319,603 metric tons last month, compared with 298,102 tons in February and 462,182 tons a year earlier.

Market players now looked ahead to the release of the minutes of the Federal Reserve’s March policy meeting later in the session for further hints on the future of its monetary policy.

Elsewhere on the Comex, gold for June delivery shed 0.35% to trade at USD1,580.95 a troy ounce, while silver for May delivery eased down 0.35% to trade at USD27.78 a troy ounce.

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