Investing.com - Copper futures rose to a one-week high during European morning trade on Tuesday, as hopes for near-term monetary easing by China buoyed appetite for riskier assets.
However, growing fears over Spain’s deteriorating financial situation capped gains.
On the Comex division of the New York Mercantile Exchange, copper futures for July delivery traded at USD3.486 a pound during European morning trade, jumping 1.1%.
It earlier rose by as much as 1.55% to trade at USD3.501 a pound, the highest since May 22. Prices touched USD3.386 a pound on May 23, the lowest since January 10.
Hopes for fresh monetary easing by China to boost growth in the world’s second largest economy helped support market sentiment. Speculation for near-term monetary easing has been growing after Beijing pledged to speed up approvals for new infrastructure-related projects last week.
Beijing's push to accelerate approvals of infrastructure investments is starting to improve loan demand, a key barometer of China's economic health, the official Shanghai Securities News reported earlier.
Traders have recently been speculating about fresh easing steps and stimulus measures from Beijing to arrest faltering growth in the world's second biggest economy.
China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year. Fears over a slowdown in copper demand from the Asian nation have been weighing on prices lately.
Meanwhile, market participants continued to monitor developments surrounding the euro zone’s ongoing debt woes.
The yield on Spain’s 10-year bond rose to 6.52% in early trade on Tuesday, the highest level since November of last year, before easing slightly to 6.44%, after the government announced that it was to recapitalize one of the country’s largest commercial lenders Bankia.
The announcement fuelled fears that the rising cost of bank rescues could force Madrid into seeking an international bailout.
Speaking Monday, Spanish Prime Minister Mariano Rajoy said Spain was “finding it very difficult to finance itself”, but ruled out the possibility that the country will need a bailout.
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.
Elsewhere on the Comex, gold for August delivery rose 0.4% to trade at USD1,577.55 a troy ounce, while silver for July delivery edged 0.3% higher to trade at USD28.47 a troy ounce.
However, growing fears over Spain’s deteriorating financial situation capped gains.
On the Comex division of the New York Mercantile Exchange, copper futures for July delivery traded at USD3.486 a pound during European morning trade, jumping 1.1%.
It earlier rose by as much as 1.55% to trade at USD3.501 a pound, the highest since May 22. Prices touched USD3.386 a pound on May 23, the lowest since January 10.
Hopes for fresh monetary easing by China to boost growth in the world’s second largest economy helped support market sentiment. Speculation for near-term monetary easing has been growing after Beijing pledged to speed up approvals for new infrastructure-related projects last week.
Beijing's push to accelerate approvals of infrastructure investments is starting to improve loan demand, a key barometer of China's economic health, the official Shanghai Securities News reported earlier.
Traders have recently been speculating about fresh easing steps and stimulus measures from Beijing to arrest faltering growth in the world's second biggest economy.
China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year. Fears over a slowdown in copper demand from the Asian nation have been weighing on prices lately.
Meanwhile, market participants continued to monitor developments surrounding the euro zone’s ongoing debt woes.
The yield on Spain’s 10-year bond rose to 6.52% in early trade on Tuesday, the highest level since November of last year, before easing slightly to 6.44%, after the government announced that it was to recapitalize one of the country’s largest commercial lenders Bankia.
The announcement fuelled fears that the rising cost of bank rescues could force Madrid into seeking an international bailout.
Speaking Monday, Spanish Prime Minister Mariano Rajoy said Spain was “finding it very difficult to finance itself”, but ruled out the possibility that the country will need a bailout.
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.
Elsewhere on the Comex, gold for August delivery rose 0.4% to trade at USD1,577.55 a troy ounce, while silver for July delivery edged 0.3% higher to trade at USD28.47 a troy ounce.