Investing.com - Copper futures edged up from a two-week low during European morning hours on Thursday, but gains looked likely to remain limited as a combination of concerns over global growth and uncertainty over Spain dampened the appeal of growth-linked assets.
On the Comex division of the New York Mercantile Exchange, copper futures for December delivery traded at USD3.742 a pound during European morning trade, gaining 0.65%.
Earlier in the day, prices rose by as much as 0.75% to hit a session high of USD3.748 a pound. Copper futures touched a two-week low of USD3.694 a pound on Wednesday.
Standard & Poor’s cut Spain’s credit rating by two notches to BBB-minus late Wednesday, and maintained a negative outlook on the debt-troubled country, citing mounting economic and political risks.
The ratings agency also warned that the capacity of Spanish political institutions to deal with the challenges presented by the current fiscal and economic crisis is declining.
Market players have been anticipating for the past month that the Spanish government would ask for a full-scale sovereign bailout.
A bailout would allow the European Central Bank to step in and buy Spanish sovereign debt, which would result in reduced borrowing costs for the debt-strapped nation.
But Spain has been reluctant to do so because it may come with conditions on its budget.
Elsewhere, International Monetary Fund head Christine Lagarde urged governments to work together to repair the faltering global economy or risk a further slowdown in global growth.
The IMF cut its 2012 and 2013 global growth forecasts earlier in the week, and warned of even weaker expansion unless officials in the U.S. and Europe address threats to their economies.
Copper is sensitive to the economic growth outlook because of its widespread uses across industries. It is used in the construction of buildings, power generation and transmission and the manufacture of consumer electronics.
Elsewhere on the Comex, gold for December delivery rose 0.3% to trade at USD1,770.75 a troy ounce, while silver for December delivery added 0.35% to trade at USD34.23 a troy ounce.
On the Comex division of the New York Mercantile Exchange, copper futures for December delivery traded at USD3.742 a pound during European morning trade, gaining 0.65%.
Earlier in the day, prices rose by as much as 0.75% to hit a session high of USD3.748 a pound. Copper futures touched a two-week low of USD3.694 a pound on Wednesday.
Standard & Poor’s cut Spain’s credit rating by two notches to BBB-minus late Wednesday, and maintained a negative outlook on the debt-troubled country, citing mounting economic and political risks.
The ratings agency also warned that the capacity of Spanish political institutions to deal with the challenges presented by the current fiscal and economic crisis is declining.
Market players have been anticipating for the past month that the Spanish government would ask for a full-scale sovereign bailout.
A bailout would allow the European Central Bank to step in and buy Spanish sovereign debt, which would result in reduced borrowing costs for the debt-strapped nation.
But Spain has been reluctant to do so because it may come with conditions on its budget.
Elsewhere, International Monetary Fund head Christine Lagarde urged governments to work together to repair the faltering global economy or risk a further slowdown in global growth.
The IMF cut its 2012 and 2013 global growth forecasts earlier in the week, and warned of even weaker expansion unless officials in the U.S. and Europe address threats to their economies.
Copper is sensitive to the economic growth outlook because of its widespread uses across industries. It is used in the construction of buildings, power generation and transmission and the manufacture of consumer electronics.
Elsewhere on the Comex, gold for December delivery rose 0.3% to trade at USD1,770.75 a troy ounce, while silver for December delivery added 0.35% to trade at USD34.23 a troy ounce.