Investing.com - Copper futures fell to a one-week low on Wednesday, as appetite for the red metal weakened following the release of disappointing Chinese manufacturing data.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Investors also looked ahead to the outcome of the Federal Reserve’s latest policy meeting later in the trading day.
On the Comex division of the New York Mercantile Exchange, copper futures for July delivery traded at USD3.152 a pound during European morning trade, down 1.1% on the day.
New York-traded copper prices fell by as much as 1.4% earlier in the session to hit a daily low of USD3.140 a pound, the weakest level since April 24.
Copper prices came under pressure after official data released earlier showed that China’s manufacturing purchasing managers' index ticked down to 50.6 in April from 50.9 in March.
Copper traders consider shifts in the country’s PMI as an indicator of China's copper demand, as the industrial metal is widely used by the sector.
Market players now looked ahead to the outcome of the Fed’s two-day policy meeting, as investors try to assess the central bank's attitude towards monetary stimulus.
Recent economic data has dampened expectations for an earlier than expected end to the central bank’s asset purchase program after recent Fed minutes showed that policymakers are divided over the benefits of ongoing monetary easing.
Data on Tuesday showed that the Chicago purchasing managers’ index dropped 49.0 in April from 52.4 in March, the lowest level since September 2009.
The dismal data came after a report last week showed that the U.S. economy grew 2.5% in the first quarter, falling short of expectations for 3.0% growth, underlining concerns over the outlook for the economic recovery.
The U.S. was to release data on ADP nonfarm payrolls report later in the trading day, while the Institute of Supply Management was release a report on manufacturing activity.
The U.S. is second behind China in global copper demand.
Market players also looked ahead to the outcome of the European Central Bank’s policy meeting on Thursday, amid growing expectations for a rate cut.
Data on Tuesday showed that euro zone unemployment rose to a record in March, while inflation fell more-than-expected in April.
Recent comments by ECB officials have indicated that the bank would consider cutting rates if economic data continued to deteriorate.
Elsewhere on the Comex, gold for June delivery dipped 0.1% to trade at USD1,470.35 a troy ounce, while silver for July delivery shed 0.2% to trade at USD24.13 a troy ounce.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Investors also looked ahead to the outcome of the Federal Reserve’s latest policy meeting later in the trading day.
On the Comex division of the New York Mercantile Exchange, copper futures for July delivery traded at USD3.152 a pound during European morning trade, down 1.1% on the day.
New York-traded copper prices fell by as much as 1.4% earlier in the session to hit a daily low of USD3.140 a pound, the weakest level since April 24.
Copper prices came under pressure after official data released earlier showed that China’s manufacturing purchasing managers' index ticked down to 50.6 in April from 50.9 in March.
Copper traders consider shifts in the country’s PMI as an indicator of China's copper demand, as the industrial metal is widely used by the sector.
Market players now looked ahead to the outcome of the Fed’s two-day policy meeting, as investors try to assess the central bank's attitude towards monetary stimulus.
Recent economic data has dampened expectations for an earlier than expected end to the central bank’s asset purchase program after recent Fed minutes showed that policymakers are divided over the benefits of ongoing monetary easing.
Data on Tuesday showed that the Chicago purchasing managers’ index dropped 49.0 in April from 52.4 in March, the lowest level since September 2009.
The dismal data came after a report last week showed that the U.S. economy grew 2.5% in the first quarter, falling short of expectations for 3.0% growth, underlining concerns over the outlook for the economic recovery.
The U.S. was to release data on ADP nonfarm payrolls report later in the trading day, while the Institute of Supply Management was release a report on manufacturing activity.
The U.S. is second behind China in global copper demand.
Market players also looked ahead to the outcome of the European Central Bank’s policy meeting on Thursday, amid growing expectations for a rate cut.
Data on Tuesday showed that euro zone unemployment rose to a record in March, while inflation fell more-than-expected in April.
Recent comments by ECB officials have indicated that the bank would consider cutting rates if economic data continued to deteriorate.
Elsewhere on the Comex, gold for June delivery dipped 0.1% to trade at USD1,470.35 a troy ounce, while silver for July delivery shed 0.2% to trade at USD24.13 a troy ounce.