Investing.com - Copper futures edged up from the lowest level in a week during European morning hours on Tuesday, as hopes for fresh easing measures from China’s central bank supported prices, but gains were limited amid ongoing concerns over the health of the global economy.
On the Comex division of the New York Mercantile Exchange, copper futures for December delivery traded at USD3.728 a pound during European morning trade, gaining 0.3%.
Earlier in the day, prices rose by as much as 0.9% to hit a session high of USD3.752 a pound. Copper futures fell to a one-week low of USD3.702 a pound on Monday.
Copper prices found support after the People’s Bank of China injected CNY265 billion into the money market, in a bid to ease tight liquidity conditions. It was the second largest daily reverse repo used by the central bank so far.
Optimism for further policy moves out of Beijing strengthened after PBOC Governor Zhou Xiaochuan said monetary policy must remain flexible in order to help counter the weak external environment.
On Monday, the World Bank cut its 2012 growth forecast for China’s economy to 7.7%, down from a May forecast of 8.2%.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
But gains were limited after the International Monetary Fund cut its 2012 global growth forecast earlier in the day and warned of even slower expansion unless officials in the U.S. and Europe address threats to their economies.
The IMF said that the world economy will grow 3.3% this year, the slowest since the 2009 recession, and 3.6% next year, compared with July predictions of 3.5% in 2012 and 3.9% in 2013.
Market players were also jittery as uncertainty over how soon Spain may formally request a bailout lingered after euro zone finance ministers said Monday that Madrid did not need external financial aid yet.
Later in the day, German Chancellor Angela Merkel was to travel to Athens for talks with Greek political leaders. Meanwhile, finance ministers from the European Union were to conclude a two-day meeting in Luxembourg.
Elsewhere on the Comex, gold for December delivery eased up 0.05% to trade at USD1,775.95 a troy ounce, while silver for December delivery added 0.05% to trade at USD34.02 a troy ounce.
On the Comex division of the New York Mercantile Exchange, copper futures for December delivery traded at USD3.728 a pound during European morning trade, gaining 0.3%.
Earlier in the day, prices rose by as much as 0.9% to hit a session high of USD3.752 a pound. Copper futures fell to a one-week low of USD3.702 a pound on Monday.
Copper prices found support after the People’s Bank of China injected CNY265 billion into the money market, in a bid to ease tight liquidity conditions. It was the second largest daily reverse repo used by the central bank so far.
Optimism for further policy moves out of Beijing strengthened after PBOC Governor Zhou Xiaochuan said monetary policy must remain flexible in order to help counter the weak external environment.
On Monday, the World Bank cut its 2012 growth forecast for China’s economy to 7.7%, down from a May forecast of 8.2%.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
But gains were limited after the International Monetary Fund cut its 2012 global growth forecast earlier in the day and warned of even slower expansion unless officials in the U.S. and Europe address threats to their economies.
The IMF said that the world economy will grow 3.3% this year, the slowest since the 2009 recession, and 3.6% next year, compared with July predictions of 3.5% in 2012 and 3.9% in 2013.
Market players were also jittery as uncertainty over how soon Spain may formally request a bailout lingered after euro zone finance ministers said Monday that Madrid did not need external financial aid yet.
Later in the day, German Chancellor Angela Merkel was to travel to Athens for talks with Greek political leaders. Meanwhile, finance ministers from the European Union were to conclude a two-day meeting in Luxembourg.
Elsewhere on the Comex, gold for December delivery eased up 0.05% to trade at USD1,775.95 a troy ounce, while silver for December delivery added 0.05% to trade at USD34.02 a troy ounce.