Investing.com - Copper futures regained strength on Thursday, as investors returned to the market to seek cheap valuations after prices fell to the lowest level since October 2011 in the previous session.
On the Comex division of the New York Mercantile Exchange, copper futures for July delivery traded at USD3.105 a pound during European morning trade, up 0.8% on the day.
New York-traded copper prices rose by as much as 1.4% earlier in the session to hit a daily high of USD3.121 a pound.
Nymex copper fell more than 3% on Wednesday to hit USD3.059 a pound, the weakest level since October 20, 2011, after Chinese and U.S. data fuelled concerns over an economic slowdown in the world's top two copper consumers.
ADP nonfarm payrolls data on Wednesday showed that the U.S. private sector added 119,000 jobs in April, well below expectations for an increase of 150,000.
A separate report showed that growth in the U.S. manufacturing sector slowed in April.
Meanwhile, in China, data released earlier showed that China’s final HSBC Flash Purchasing Managers Index was revised down to 50.4 in April from a flash reading of 50.5 and down from 51.6 in March.
The disappointing data came one day after a government report 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 European Central Bank’s policy meeting later in the day, amid expectations for a rate cut.
Data earlier in the week showed that euro zone unemployment rose to a record 12.1% in March while another report showed that inflation fell more-than-expected in April.
Recent comments by ECB officials have indicated that the bank would consider cutting rates if it was warranted by worsening economic data.
On Wednesday, the Federal Reserve recommitted to its USD85 billion a month asset purchase program and indicated that it could increase or decrease the monthly amount as deemed necessary.
"The Committee is prepared to increase or reduce the pace of its purchases to maintain appropriate policy accommodation as the outlook for the labor market or inflation changes," the Fed statement said.
Investors were also looking ahead to Friday’s data on U.S. nonfarm payrolls after the ADP jobs report fell short of expectations on Wednesday, adding to concerns over the economic recovery.
Elsewhere on the Comex, gold for June delivery added 0.6% to trade at USD1,454.85 a troy ounce, while silver for July delivery rose 0.9% to trade at USD23.55 a troy ounce.
On the Comex division of the New York Mercantile Exchange, copper futures for July delivery traded at USD3.105 a pound during European morning trade, up 0.8% on the day.
New York-traded copper prices rose by as much as 1.4% earlier in the session to hit a daily high of USD3.121 a pound.
Nymex copper fell more than 3% on Wednesday to hit USD3.059 a pound, the weakest level since October 20, 2011, after Chinese and U.S. data fuelled concerns over an economic slowdown in the world's top two copper consumers.
ADP nonfarm payrolls data on Wednesday showed that the U.S. private sector added 119,000 jobs in April, well below expectations for an increase of 150,000.
A separate report showed that growth in the U.S. manufacturing sector slowed in April.
Meanwhile, in China, data released earlier showed that China’s final HSBC Flash Purchasing Managers Index was revised down to 50.4 in April from a flash reading of 50.5 and down from 51.6 in March.
The disappointing data came one day after a government report 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 European Central Bank’s policy meeting later in the day, amid expectations for a rate cut.
Data earlier in the week showed that euro zone unemployment rose to a record 12.1% in March while another report showed that inflation fell more-than-expected in April.
Recent comments by ECB officials have indicated that the bank would consider cutting rates if it was warranted by worsening economic data.
On Wednesday, the Federal Reserve recommitted to its USD85 billion a month asset purchase program and indicated that it could increase or decrease the monthly amount as deemed necessary.
"The Committee is prepared to increase or reduce the pace of its purchases to maintain appropriate policy accommodation as the outlook for the labor market or inflation changes," the Fed statement said.
Investors were also looking ahead to Friday’s data on U.S. nonfarm payrolls after the ADP jobs report fell short of expectations on Wednesday, adding to concerns over the economic recovery.
Elsewhere on the Comex, gold for June delivery added 0.6% to trade at USD1,454.85 a troy ounce, while silver for July delivery rose 0.9% to trade at USD23.55 a troy ounce.