Investing.com - Copper futures turned lower during European morning hours on Wednesday, as investors were hesitant to push up prices too high ahead of the release of highly-anticipated Chinese economic growth data on Thursday.
Prices were higher earlier in the session, as market sentiment firmed up in the wake of Moody’s decision not to downgrade Spain's credit rating.
On the Comex division of the New York Mercantile Exchange, copper futures for December delivery traded at USD3.692 a pound during European morning trade, easing down 0.2%.
Earlier in the day, prices rose by as much as 0.7% to hit a session high of USD3.726 a pound.
Moody’s confirmed Spain’s credit rating at Baaa3 with a negative outlook, just one notch above junk status and expressed confidence that reforms enacted by the Spanish government and support from the euro zone would ensure that Madrid had continued access to the credit market.
The yield on Spanish 10-year bonds fell to 5.53% following the announcement, the lowest level since April.
Speculation that the debt-strapped nation was moving closer to requesting a bailout further supported sentiment.
A bailout would allow the ECB 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.
European Union policymakers will hold a two-day summit in Brussels starting on Thursday to discuss ways to firewall and extinguish the debt crisis as well as Greece's steps towards fiscal recovery.
Copper traders looked ahead to Chinese third quarter growth figures due out on Thursday to gauge whether the world second largest economy is heading towards a hard or a soft landing.
Market analysts expect the data to show China's annual growth slowed for a seventh straight quarter in the July-September period to the weakest level since the depths of the 2009 global financial crisis.
Official data released earlier in the week showed that Chinese consumer prices rose 1.9% in September from the year-ago period, down from 2.0% in August, while producer price inflation fell 3.6%.
The data came after a report over the weekend showed that Chinese exports grew 9.9% on the year in September, increasing from 2.7% in August. Imports rose 2.4% from a year earlier.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Elsewhere on the Comex, gold for December delivery added 0.2% to trade at USD1,749.55 a troy ounce, while silver for December delivery eased up 0.1% to trade at USD32.98 a troy ounce.
Prices were higher earlier in the session, as market sentiment firmed up in the wake of Moody’s decision not to downgrade Spain's credit rating.
On the Comex division of the New York Mercantile Exchange, copper futures for December delivery traded at USD3.692 a pound during European morning trade, easing down 0.2%.
Earlier in the day, prices rose by as much as 0.7% to hit a session high of USD3.726 a pound.
Moody’s confirmed Spain’s credit rating at Baaa3 with a negative outlook, just one notch above junk status and expressed confidence that reforms enacted by the Spanish government and support from the euro zone would ensure that Madrid had continued access to the credit market.
The yield on Spanish 10-year bonds fell to 5.53% following the announcement, the lowest level since April.
Speculation that the debt-strapped nation was moving closer to requesting a bailout further supported sentiment.
A bailout would allow the ECB 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.
European Union policymakers will hold a two-day summit in Brussels starting on Thursday to discuss ways to firewall and extinguish the debt crisis as well as Greece's steps towards fiscal recovery.
Copper traders looked ahead to Chinese third quarter growth figures due out on Thursday to gauge whether the world second largest economy is heading towards a hard or a soft landing.
Market analysts expect the data to show China's annual growth slowed for a seventh straight quarter in the July-September period to the weakest level since the depths of the 2009 global financial crisis.
Official data released earlier in the week showed that Chinese consumer prices rose 1.9% in September from the year-ago period, down from 2.0% in August, while producer price inflation fell 3.6%.
The data came after a report over the weekend showed that Chinese exports grew 9.9% on the year in September, increasing from 2.7% in August. Imports rose 2.4% from a year earlier.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Elsewhere on the Comex, gold for December delivery added 0.2% to trade at USD1,749.55 a troy ounce, while silver for December delivery eased up 0.1% to trade at USD32.98 a troy ounce.