Forexpros - Copper futures traded near a two-week high during European morning hours on Tuesday, as ongoing expectations policy makers in China and the U.S. will increase efforts to boost their slowing economies continued to boost sentiment on the industrial metal. Gains were limited as investors continued to worry over downbeat global growth prospects. On the Comex division of the New York Mercantile Exchange, copper futures for September delivery traded at USD3.496 a pound during European morning trade, gaining 0.3%. It earlier rose by as much as 0.75% to trade at USD3.512 a pound, the highest since July 5. Market sentiment remained supported ahead of testimony to the Senate by Federal Reserve Chairman Ben Bernanke later Tuesday and Wednesday, amid ongoing speculation over whether the U.S. central bank will introduce more easing to stimulate the economy. Expectations for another round of easing by the bank were boosted on Monday after official data showing a third consecutive monthly decline in U.S. retail sales in June. Meanwhile, hopes for additional stimulus measures from China mounted after Chinese Premier Wen Jiabao said over the weekend that policy makers were likely to introduce measures to boost growth in the second half of the year The comments followed government data released last week showing China’s second quarter economic growth slowed to a three-year low of 7.6%, compared to growth of 8.1% in the first quarter. China is boosting this year’s railway infrastructure investment plan by 9% to CNY448.3 billion, according to the nation’s National Development and Reform Commission. There are also expectations in the market that China will cut its banks’ reserve requirement ratio to boost lending and support growth in the world’s largest copper consumer. A deeper slowdown in China would impair a global expansion that is already faltering because of the ongoing debt crisis in the euro zone. The International Monetary Fund on Monday reduced its outlook for global growth to 3.5% from its April forecast of 3.6%, citing the impact of the euro zone’s ongoing debt crisis on emerging market economies. Concerns over the lack of substantial progress in tackling the euro zone’s sovereign debt crisis also weighed. Germany’s constitutional court announced Monday that it will not deliver a ruling on whether the euro zone’s permanent bailout fund contravenes the German constitution until September 12, disappointing hopes for an earlier decision. Europe as a region is second in global demand for the industrial metal. Prices have tracked investor sentiment toward the euro zone’s debt crisis in recent months. Elsewhere on the Comex, gold for August delivery added 0.3% to trade at USD1,596.55 a troy ounce, while silver for September delivery rose 0.7% to trade at USD27.50 a troy ounce.

Source