Forexpros - Copper futures bounced off the lowest level since early-September during European morning hours on Tuesday, as sentiment firmed up after data showed that Spain’s economy contracted less-than-expected in the third quarter. Market sentiment found additional support after the initial damage caused by Hurricane Sandy appeared to have been less severe that some had feared. On the Comex division of the New York Mercantile Exchange, copper futures for December delivery traded at USD3.519 a pound during European morning trade, gaining 0.7%. Earlier in the day, prices rose by as much as 0.8% to hit a session high of USD3.520 a pound. On Monday, futures fell to USD3.482 a pound, the cheapest level since September 5. Trading activity was expected to remain thin on Tuesday, as investors continued to monitor the trajectory of Hurricane Sandy, as it barrels along the U.S. East Coast. Markets in the U.S. were set to remain closed for a second day on Tuesday due to disruption caused by the superstorm. Market sentiment firmed up after official data showed that the Spanish economy contracted by 0.3% in the third quarter, compared to expectations for a 0.4% contraction. The data came a day after Spanish Prime Minister Mariano Rajoy said that he would request a bailout "when I think it is in the interests of Spain". 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. But gains were limited after data showed that the number of German unemployed rose by 20,000 in October, compared to expectations for an increase of 10,000. Investors were also jittery amid concerns over former Italian Prime Minister Silvio Berlusconi's threat to bring down the current government. Rome was planning to auction as much as EUR7 billion of government bonds later in the day. Market participants were looking ahead to manufacturing data from China and nonfarm payrolls figures from the U.S., both due out later in the week. Copper prices have been under heavy selling pressure in recent sessions, losing nearly 9% since touching a four-month high of USD3.838 in mid-September, as increasing concerns over the outlook for global economic growth and the impact on future demand prospects dampened the appeal of the commodity. Copper is sensitive to the economic growth outlook because of its widespread uses across industries. Elsewhere on the Comex, gold for December delivery eased up 0.3% to trade at USD1,713.75 a troy ounce, while silver for December delivery rose 0.85% to trade at USD32.01 a troy ounce.

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