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Copper futures rally 1% on robust Chinese trade data

Published 01/10/2013, 04:57 AM
Updated 01/10/2013, 04:57 AM
Investing.com - Copper futures rallied during European morning hours on Thursday, as appetite for growth-linked assets improved after data showed Chinese exports surged more-than-expected in December.

On the Comex division of the New York Mercantile Exchange, copper futures for March delivery traded at USD3.716 a pound during European morning trade, up 1.25% on the day.

New York-traded copper prices rose by as much as 1.3% earlier in the session to hit a daily high of USD3.717 a pound. Futures rose to USD3.758 on January 3, the strongest level since October 18.

Market sentiment was boosted after official trade data released earlier showed that Chinese exports grew 14.1% from a year earlier in December, blowing past expectations for a 5% gain and up from a 2.9% increase in November.

Imports expanded by 6% from a year earlier, beating expectations for a 3.5% increase and following on from zero growth the previous month.   

The strong rebound in shipments helped widen the trade surplus to USD31.6 billion in December from USD19.6 billion in November.

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

Investors now looked ahead to the European Central Bank’s policy meeting later in the day. The ECB was widely expected to hold off cutting rates, but some market participants expected President Mario Draghi to flag the possibility of rate cuts later in the year.

Another closely watched development will be the Bank of England's monthly announcement on its key interest rate, also due Thursday.

Focus was expected to remain on the U.S. economy, as investors remained jittery over the longer term fiscal outlook, with negotiations on raising the U.S. debt ceiling still to come in February.

The country was to release its weekly government report on initial jobless claims later in the day.

Elsewhere on the Comex, gold for February delivery added 0.4% to trade at USD1,662.45 a troy ounce, while silver for March delivery climbed 0.9% to trade at USD30.51 a troy ounce.

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