DJ: BASE METALS: Shanghai Metals Lower On Poor U.S. Economic Data
SHANGHAI (Dow Jones)--Base metals on the Shanghai Futures Exchange were lower Thursday in response to disappointing U.S. economic data overnight, despite support from the dollar's softness against the euro.
Benchmark SHFE August copper settled 1.3% lower at CNY67,530 a metric ton.
Lower U.S. car sales and weaker-than-expected jobs data sent global metals prices lower overnight, setting the tone for SHFE metals, as investors were wary that a slower-than-expected economic recovery in the world's largest economy would weigh on demand for industrial metals.
Signs of a slowdown in China's economic growth also clouded the outlook for metals, as the Asian nation is the world's largest metal consumer.
However, analysts said a slight rebound toward the close indicated that some investors believe the poor U.S. economic data might prompt the Federal Reserve to launch another round of monetary easing measures.
"The global economy is recovering, but data released didn't really reflect that, and that may put a lid on metal prices," said Minmetals Futures analyst Zhuo Guiqiu.
Analysts said investors are likely to remain on the sidelines over the next few sessions, pending directional cues from China's inflation data next week.
Copper traded at the Changjiang Nonferrous Metals Trading Market, a major spot metals market in Shanghai, was quoted at CNY68,700-CNY68,800/ton, down from CNY69,450-CNY69,550/ton Wednesday.
