Investing.com - Copper futures rose sharply to hit a two-week high on Wednesday, as market sentiment weakened after disappointing manufacturing data from China sparked fresh concerns over the outlook for global economic growth.
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 July delivery traded at USD3.302 a pound during European morning trade, down 2.3% on the day.
New York-traded copper prices fell by as much as 2.8% earlier in the day to hit a session low of USD3.285 a pound, the weakest level since May 20.
Data released earlier showed that China’s HSBC Flash Purchasing Managers Index, the earliest indicator of the country's industrial activity, fell to a seven-month low of 49.6 in May from a final reading of 50.4 in April.
Copper traders consider shifts in the HSBC PMI an indicator of China's copper demand, as the industrial metal is widely used by the sector.
Prices came under additional pressure after Federal Reserve Chairman Ben Bernanke said Wednesday the central bank could begin tapering its bond-buying program in the "next few meetings”.
In testimony to the U.S. Joint Economic Committee on Wednesday, Bernanke said a decision to scale back the Fed’s asset purchase program could be taken in the "next few meetings" depending on economic data.
Meanwhile, Wednesday’s minutes from the U.S. central bank’s May meeting showed a "number" of policymakers were prepared to taper bonds purchases as soon as June.
Elsewhere on the Comex, gold for June delivery rose 1.4% to trade at USD1,387.25 a troy ounce, while silver for July delivery was little changed to trade at USD22.47 a troy ounce.
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 July delivery traded at USD3.302 a pound during European morning trade, down 2.3% on the day.
New York-traded copper prices fell by as much as 2.8% earlier in the day to hit a session low of USD3.285 a pound, the weakest level since May 20.
Data released earlier showed that China’s HSBC Flash Purchasing Managers Index, the earliest indicator of the country's industrial activity, fell to a seven-month low of 49.6 in May from a final reading of 50.4 in April.
Copper traders consider shifts in the HSBC PMI an indicator of China's copper demand, as the industrial metal is widely used by the sector.
Prices came under additional pressure after Federal Reserve Chairman Ben Bernanke said Wednesday the central bank could begin tapering its bond-buying program in the "next few meetings”.
In testimony to the U.S. Joint Economic Committee on Wednesday, Bernanke said a decision to scale back the Fed’s asset purchase program could be taken in the "next few meetings" depending on economic data.
Meanwhile, Wednesday’s minutes from the U.S. central bank’s May meeting showed a "number" of policymakers were prepared to taper bonds purchases as soon as June.
Elsewhere on the Comex, gold for June delivery rose 1.4% to trade at USD1,387.25 a troy ounce, while silver for July delivery was little changed to trade at USD22.47 a troy ounce.