Investing.com - Copper futures held on to losses during European morning trade on Tuesday, but were off the lowest levels of the day following the release of a flurry of economic data out of the euro zone.
On the Comex division of the New York Mercantile Exchange, copper futures for July delivery traded at USD3.546 a pound during European morning trade, dipping 0.25%.
It earlier fell by as much as 0.95% to trade at a session low USD3.516 a pound. Prices touched USD3.504 on Monday, the lowest since January 11.
Market sentiment firmed up slightly after data showed that the euro zone’s economy stagnated in the first three months of 2012, defying expectations for a contraction.
Eurostat said that the euro zone’s gross domestic product was flat during the first quarter of 2012, compared to expectations for a contraction of 0.2%. The euro zone’s economy shrank by 0.3% in the preceding quarter.
The report came after preliminary data showed that Germany’s economy expanded more-than-expected in the first quarter, indicating that the euro zone’s largest economy is weathering the effects of the crisis in the region.
Germany’s gross domestic product grew by a seasonally adjusted 0.5% in the three months to March, above expectations for a growth of 0.1%. German GDP contracted by an unrevised 0.2% in the fourth quarter of 2011.
But copper remained lower after a report showing German economic sentiment for May deteriorated significantly more-than-expected, declining for the first time in six months.
In a report, the ZEW Centre for Economic Research said that its index of German economic sentiment declined by 12.6 points to 10.8 in May from April’s reading of 23.4. Analysts had expected the index to decline by 4.4 points to 19.0 in May.
Economic sentiment in the euro zone turned negative for the first time in three months in May, dropping by 15.5 points to minus 2.4 from a reading of 13.1 in April.
Meanwhile, investors remained cautious ahead of a fresh round of Greek cross party talks aimed at forming a government later in the day, after a more than week-long political stalemate fuelled fears over the country’s ability to uphold its financial commitments and its possible exit from the euro zone.
Markets were also jittery after Moody’s Investors Service earlier announced widespread downgrades on Italy’s banking sector, amid concerns over limited access to market funding.
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 June delivery dipped 0.15% to trade at USD1,558.55 a troy ounce, while silver for July delivery shed 0.3% to trade at USD28.26 a troy ounce.
On the Comex division of the New York Mercantile Exchange, copper futures for July delivery traded at USD3.546 a pound during European morning trade, dipping 0.25%.
It earlier fell by as much as 0.95% to trade at a session low USD3.516 a pound. Prices touched USD3.504 on Monday, the lowest since January 11.
Market sentiment firmed up slightly after data showed that the euro zone’s economy stagnated in the first three months of 2012, defying expectations for a contraction.
Eurostat said that the euro zone’s gross domestic product was flat during the first quarter of 2012, compared to expectations for a contraction of 0.2%. The euro zone’s economy shrank by 0.3% in the preceding quarter.
The report came after preliminary data showed that Germany’s economy expanded more-than-expected in the first quarter, indicating that the euro zone’s largest economy is weathering the effects of the crisis in the region.
Germany’s gross domestic product grew by a seasonally adjusted 0.5% in the three months to March, above expectations for a growth of 0.1%. German GDP contracted by an unrevised 0.2% in the fourth quarter of 2011.
But copper remained lower after a report showing German economic sentiment for May deteriorated significantly more-than-expected, declining for the first time in six months.
In a report, the ZEW Centre for Economic Research said that its index of German economic sentiment declined by 12.6 points to 10.8 in May from April’s reading of 23.4. Analysts had expected the index to decline by 4.4 points to 19.0 in May.
Economic sentiment in the euro zone turned negative for the first time in three months in May, dropping by 15.5 points to minus 2.4 from a reading of 13.1 in April.
Meanwhile, investors remained cautious ahead of a fresh round of Greek cross party talks aimed at forming a government later in the day, after a more than week-long political stalemate fuelled fears over the country’s ability to uphold its financial commitments and its possible exit from the euro zone.
Markets were also jittery after Moody’s Investors Service earlier announced widespread downgrades on Italy’s banking sector, amid concerns over limited access to market funding.
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 June delivery dipped 0.15% to trade at USD1,558.55 a troy ounce, while silver for July delivery shed 0.3% to trade at USD28.26 a troy ounce.