Copper futures trim gains following poor euro zone PMI data

CommoditiesOct 24, 2012 06:05AM ET
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Investing.com - Copper futures were modestly higher during European morning hours on Wednesday, trimming earlier gains after weak manufacturing data out of the euro zone underlined concerns over the outlook for global growth.

On the Comex division of the New York Mercantile Exchange, copper futures for December delivery traded at USD3.578 a pound during European morning trade, adding 0.2%.

Earlier in the day, prices rose by as much as 0.75% to hit a session high of USD3.597 a pound. Copper futures fell to USD3.547 a pound on Tuesday, the cheapest since September 7.

Copper prices have been under heavy selling pressure in recent sessions, as increasing concerns over the outlook for global economic growth and the impact on future demand prospects dampened the appeal of the commodity.

Markit said that its flash euro zone manufacturing purchasing managers’ index fell 45.3 in October from a final reading of 46.1 in September. Analysts had expected the index to ease up to 46.6 in October.

Germany’s flash manufacturing PMI fell to 45.7 in October, from a final reading of 47.4 in September, disappointing expectations for an improvement to 48.0.

Meanwhile, a report by German research institute Ifo showed that its business climate index fell to100.0 in October, the lowest level since March 2010, from a reading of 101.4 in September.

Copper futures remained supported after a report showed that China's HSBC manufacturing PMI came in at 49.1 in October, compared with a final reading of 47.9 in September.

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

Investors are now turning their attention to the Federal Reserve's two-day policy-setting meeting, which kicks off later in the day, after the central bank announced its third round of quantitative easing last month.

Markets may stay subdued ahead of the release later in the week of U.S. data including monthly new home sales, durable goods orders and third-quarter GDP figures.

Elsewhere on the Comex, gold for December delivery eased up 0.1% to trade at USD1,710.75 a troy ounce, while silver for December delivery rose 0.5% to trade at USD31.95 a troy ounce.

Copper futures trim gains following poor euro zone PMI data

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