🤑 It doesn’t get more affordable. Grab this 60% OFF Black Friday offer before it disappears…CLAIM SALE

Copper futures gain after China manufacturing improves

Published 11/01/2012, 06:05 AM
GC
-
HG
-
SI
-
Investing.com - Copper futures were higher for the third consecutive day on Thursday, as appetite for growth-linked assets improved following a report showing China’s manufacturing output expanded for the first time in three months in October.

On the Comex division of the New York Mercantile Exchange, copper futures for December delivery traded at USD3.541 a pound during European morning trade, gaining 0.65%.

Earlier in the day, prices rose by as much as 1% to hit a session high of USD3.553 a pound. Futures fell to USD3.482 a pound earlier in the week, the cheapest level since September 5.

Market sentiment found support after official data showed that China’s manufacturing purchasing managers’ index rose to a three-month high of 50.2 in October from September's 49.8. A reading above 50.0 signifies expansion.

A separate report showed that the final reading of China’s HSBC PMI came in at 49.5 in September, an eight month high.

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

Market players were now looking ahead to a series of important political and economic events set to unfold in early November.

Later in the day, the U.S. was to release the ADP report on nonfarm payrolls, as well as the weekly government report on initial jobless claims. In addition, the Institute of Supply Management was to publish data on U.S. manufacturing activity.

On Friday, the U.S. will release a closely-watched report on U.S. non-farm payrolls, to gauge the strength of the U.S. labor market.

Any improvement in the U.S. economy could scale back expectations for further easing from the Federal Reserve, boosting the dollar and potentially weighing on the industrial metal.

Political developments were likely to take center stage next week, with the U.S. presidential election on November 6 and the start of the Chinese Communist Party Congress on November 8, where a once-in-a-decade leadership change was to take place.

Euro zone developments also remained in focus. Investors were cautious amid uncertainty over when Spain may request a bailout and whether Greece will secure the next tranche of its bailout funding.

Elsewhere on the Comex, gold for December delivery rose 0.2% to trade at USD1,722.65 a troy ounce, while silver for December delivery added 0.4% to trade at USD32.43 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.