Investing.com - Copper futures rose sharply to hit a one-week high on Thursday, after data indicated that the slump in the euro zone’s manufacturing sector is easing.
A stronger-than-expected reading on Chinese factory activity further supported gains.
Appetite for riskier assets was also boosted after the Federal Reserve on Wednesday gave no indications on whether it will begin to taper its stimulus program in the near future.
On the Comex division of the New York Mercantile Exchange, copper futures for September delivery traded at USD3.159 a pound during European morning trade, up 1.3%.
Copper prices were likely to find support at USD3.086 a pound, the low from July 29 and resistance at USD3.193 a pound, the high from July 26.
In the euro zone, data showed that July’s manufacturing purchasing managers’ index improved to a two-year high of 50.3 from 48.8 in June.
Germany’s manufacturing PMI was revised up to an 18-month high of 50.7 in July from a final reading of 48.6 in June and above the preliminary reading of 50.3.
Elsewhere in Europe, the U.K. manufacturing PMI rose to 54.6 in July, the fastest rate of growth in 28 months.
Europe as a region is third in global demand for the industrial metal.
The industrial metal was also boosted after a government report released earlier in the session showed that China’s manufacturing purchasing managers' index rose unexpectedly to 50.3 in July from 50.1 in June.
A reading above 50.0 indicates industry expansion, below indicates contraction.
However, the official data differed from the final reading of the HSBC China Purchasing Managers Index, which hit an 11-month low of 47.7 in July.
China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Meanwhile, the Fed said on Wednesday that it would keep buying USD85 billion a month in mortgage and Treasury securities and added that the pace of economic growth is "modest".
The Fed’s stimulus program is viewed by many investors as a key driver in boosting the price of commodities as it tends to depress the value of the dollar.
Market players now looked ahead to highly-anticipated data on U.S. nonfarm payrolls due on Friday for indications of how the recovery in the U.S. labor market is progressing.
The September contract settled up 2.5% at USD3.118 a pound on Wednesday, after official data showed that the U.S. economy grew more-than-expected in the second quarter of 2012.
The Commerce Department said that gross domestic product grew at a seasonally adjusted annual rate of 1.7% in the three months to June, beating expectations for growth of 1%.
The robust GDP data came after payroll processing firm ADP said non-farm private employment rose by a seasonally adjusted 200,000 in July, above expectations for an increase of 180,000.
The U.S. is second behind China in global copper demand.
Elsewhere on the Comex, gold for December delivery added 0.85% to trade at USD1,324.35 a troy ounce, while silver for September delivery rose 0.5% to trade at USD19.72 a troy ounce.
A stronger-than-expected reading on Chinese factory activity further supported gains.
Appetite for riskier assets was also boosted after the Federal Reserve on Wednesday gave no indications on whether it will begin to taper its stimulus program in the near future.
On the Comex division of the New York Mercantile Exchange, copper futures for September delivery traded at USD3.159 a pound during European morning trade, up 1.3%.
Copper prices were likely to find support at USD3.086 a pound, the low from July 29 and resistance at USD3.193 a pound, the high from July 26.
In the euro zone, data showed that July’s manufacturing purchasing managers’ index improved to a two-year high of 50.3 from 48.8 in June.
Germany’s manufacturing PMI was revised up to an 18-month high of 50.7 in July from a final reading of 48.6 in June and above the preliminary reading of 50.3.
Elsewhere in Europe, the U.K. manufacturing PMI rose to 54.6 in July, the fastest rate of growth in 28 months.
Europe as a region is third in global demand for the industrial metal.
The industrial metal was also boosted after a government report released earlier in the session showed that China’s manufacturing purchasing managers' index rose unexpectedly to 50.3 in July from 50.1 in June.
A reading above 50.0 indicates industry expansion, below indicates contraction.
However, the official data differed from the final reading of the HSBC China Purchasing Managers Index, which hit an 11-month low of 47.7 in July.
China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Meanwhile, the Fed said on Wednesday that it would keep buying USD85 billion a month in mortgage and Treasury securities and added that the pace of economic growth is "modest".
The Fed’s stimulus program is viewed by many investors as a key driver in boosting the price of commodities as it tends to depress the value of the dollar.
Market players now looked ahead to highly-anticipated data on U.S. nonfarm payrolls due on Friday for indications of how the recovery in the U.S. labor market is progressing.
The September contract settled up 2.5% at USD3.118 a pound on Wednesday, after official data showed that the U.S. economy grew more-than-expected in the second quarter of 2012.
The Commerce Department said that gross domestic product grew at a seasonally adjusted annual rate of 1.7% in the three months to June, beating expectations for growth of 1%.
The robust GDP data came after payroll processing firm ADP said non-farm private employment rose by a seasonally adjusted 200,000 in July, above expectations for an increase of 180,000.
The U.S. is second behind China in global copper demand.
Elsewhere on the Comex, gold for December delivery added 0.85% to trade at USD1,324.35 a troy ounce, while silver for September delivery rose 0.5% to trade at USD19.72 a troy ounce.