IV:Copper futures off the lows after upbeat German ZEW report
Investing.com - Copper futures trimmed losses during European morning hours on Tuesday, coming off the lowest level of the session after a report showed that German economic sentiment improved to the highest level since April 2010 this month.
On the Comex division of the New York Mercantile Exchange, copper futures for March delivery traded at USD3.676 a pound during European morning trade, down 1.6% on the day.
New York-traded copper prices fell by as much as 1.9% earlier in the day to hit a session low of USD3.666 a pound, the weakest level since January 29.
In a report released earlier, the ZEW Centre for Economic Research said that its index of German economic sentiment climbed by 16.7 points to 48.2 in February from January’s reading of 31.2.
Analysts had expected the index to improve by 4.3 points to 35.0 in February.
Economic sentiment in the euro zone also hit a 34-month high in February, fueling hopes that the region is making its way out of the ongoing debt crisis.
The index of euro zone economic sentiment improved by 11.2 points to 42.4 in February from a reading of 31.2 in January.
Economists had expected euro zone economic sentiment to improve by 4.3 points to 35.5.
Copper prices remained sharply lower as appetite for growth-linked assets weakened amid concerns over the global economic outlook.
Copper is sensitive to the economic outlook because of its widespread uses in construction and manufacturing.
U.S. housing data due this week will be in focus as investors seek more cues on the country's economic health.
Copper traders also looked ahead to the release of the minutes of the Federal Reserve’s January meeting on Wednesday for hints regarding the central bank’s attitude towards monetary policy.
Any policy pause signal from the Fed minutes may send the U.S. dollar higher, pressuring dollar-denominated commodities.
Market players were also cautious ahead of the upcoming Italian general elections next week, amid concerns that a hung parliament could hamper ongoing efforts at economic reforms.
Elsewhere on the Comex, gold for April delivery added 0.15% to trade at USD1,612.30 a troy ounce, while silver for March delivery rose 0.5% to trade at USD30.00 a troy ounce.
