Investing.com - Copper futures were down for the fourth consecutive day on Thursday, dropping to the lowest level in eight weeks as appetite for growth-linked assets weakened following the release of downbeat euro zone data. Prices were already on the back foot amid concern the Federal Reserve may scale back its stimulus program and market talk that a large hedge fund was liquidating positions in the commodity market. On the Comex division of the New York Mercantile Exchange, copper futures for March delivery traded at USD3.561 a pound during European morning trade, down 1.3% on the day. New York-traded copper prices fell by as much as 1.5% earlier in the day to hit a session low of USD3.561 a pound, the weakest level since December 24. Market research group Markit said that its preliminary euro zone manufacturing purchasing managers’ index fell to a seasonally adjusted 47.8 in February from a final reading of 47.9 in January. Analysts had expected the index to ease up to 48.4 in February. Meanwhile, Germany’s manufacturing purchasing managers’ index rose to a seasonally adjusted 50.1 in February from a final reading of 49.8 in January, moving into expansion territory for the first time in 12 months but slightly below expectations for an increase to 50.5. The report also showed that service sector activity in Germany expanded at the slowest rate in two months in February, with the services PMI declining to 54.1 from 55.7 in January. Analysts had expected the index to ease down to 55.5. The data came after a report showing that the French manufacturing PMI rose to 43.6 in February from a final reading of 42.9 in January, compared to expectations for a reading of 43.8. Service sector activity in France fell to a 48-month low of 42.7 in February from a final reading of 43.6 in January. Analysts had expected the index to ease up to 44.5. Copper prices were already lower earlier in the session after Wednesday’s minutes of the Federal Reserve’s most recent meeting indicated that the bank may wind down its bond-buying program sooner than expected. The minutes of the Fed’s January meeting showed that policymakers discussed the slowing or stopping of bond purchases even before the job market improves, amid concerns that the policy could cause instability in financial markets. The possibility that the Federal Reserve could end its bond-buying run this year helped buoy the U.S. dollar. The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was up 0.45% to trade at 81.53, the strongest level since September 5. A stronger dollar reduces demand for raw materials as an alternative investment and makes dollar-priced commodities more expensive for holders of other currencies. Concerns that China may step up monetary tightening efforts also weighed after China's State Council said on Wednesday that it would continue with its property market controls to curb price rises and speculation. China’s central bank drained liquidity from the money markets for the first time since June earlier in the week. China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year. Elsewhere on the Comex, gold for April delivery tumbled 0.65% to trade at USD1,567.70 a troy ounce, while silver for March delivery declined 0.5% to trade at USD28.47 a troy ounce.

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