Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Copper little changed as China gloom counters stimulus hopes

Published 08/27/2012, 05:03 AM
GC
-
HG
-
SI
-
Investing.com - Copper futures were little changed near last week’s one-month high during European morning hours on Monday, as growing concerns over a sharp slowdown in Chinese economic growth countered expectations for more action from central banks.

On the Comex division of the New York Mercantile Exchange, copper futures for December delivery traded at USD3.492 a pound during European morning trade, easing up 0.1%.

Earlier in the day, prices rose by as much as 0.65% to trade at a session high of USD3.511 a pound. Prices touched USD3.512 a pound last Thursday, the highest since July 20.

Copper prices have rallied in recent weeks, climbing nearly 7% since August 2, amid growing hopes policymakers in the U.S., Europe and China will introduce fresh easing measures to prop up their respective economies.

Fed Chairman Ben Bernanke told a congressional oversight panel on Friday that the U.S. central bank has room to deliver additional monetary easing to stimulate growth in the U.S. economy.

Market players looked ahead to a speech by Bernanke at an annual symposium in Jackson Hole, Wyoming at the end of the week, amid ongoing speculation over how close the U.S. central bank is to implementing more stimulus measures.

He has used the event the previous two years to flag the Fed's intention on more easing.

Growing expectations that the European Central Bank will implement policy measures to help stabilize the euro zone's sovereign debt markets at its next policy meeting in early September further supported the market.

ECB President Mario Draghi will speak at Jackson Hole on Saturday.

Gains were limited as concerns the euro zone’s debt crisis is worsening were underlined Friday after German Chancellor Angela Merkel rejected Greek pleas for an extension to its economic reform program.

Meanwhile, industry data showed earlier that German business confidence deteriorated for the fourth consecutive month to hit the lowest level since March 2010 in August.

The German research institute, Ifo said its Business Climate Index fell by 0.9 point to a seasonally adjusted 102.3 in August from a reading of 103.2 in July, whose figure was revised from 103.3.

Analysts had expected the index to ease down by 0.6 points to 102.6 in August.

Data showing profits at Chinese industrial companies fell for a fourth month in July further weighed. Income dropped 5.4% last month from a year earlier to CNY366.8 billion.

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

Elsewhere on the Comex, gold for October delivery eased down 0.05% to trade at USD1,669.85 a troy ounce, while silver for December delivery rose 0.75% to trade at USD30.94 a troy ounce.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.