FX:Copper futures trim losses as markets await Greece news, ECB
Forexpros - Copper futures came off their lowest levels of the day on Thursday, paring losses suffered in the wake of data showing an unexpected increase in Chinese consumer prices as investors continued to monitor the latest news out of Greece ahead of a policy decision by the European Central Bank.
On the Comex division of the New York Mercantile Exchange, copper futures for March delivery traded at USD3.895 a pound during European morning trade, shedding 0.15%.
It earlier fell by as much as 0.95% to trade at a session low USD3.874 a pound.
Copper prices came under pressure during the Asian trading session after China’s National Bureau of Statistics said consumer price inflation rose by a seasonally adjusted 4.5% in January, accelerating from 4.1% in December.
Month-on-month, the consumer price index rose 1.5% in January from a month earlier, the largest monthly gain in four years. The data dampened expectations China will ease monetary policy in the near-term to stimulate growth in the world’s second largest economy.
China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
However, market sentiment remained supported amid hopes Greece was coming closer to a bailout deal.
Following talks on Wednesday, Greek Prime Minister Lucas Papademos said political leaders had reached an agreement in principle on austerity measures required for the country to secure its next aid package, but the issue of proposed pension cuts was unresolved.
Mr. Papademos said discussions on the issue with international lenders would continue, in the hope of reaching an agreement ahead of a meeting of euro zone finance ministers later Thursday.
Greece needs to finalize a debt restructuring deal by early March as part of an agreement to receive a EUR130 billion bailout package and avert a messy sovereign debt default.
Meanwhile, markets were also eyeing the European Central Bank’s policy meeting later Thursday. The ECB was expected to keep interest rates on hold at 1% but could signal it is ready to cut rates in March.
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 April delivery added 0.35% to trade at USD1,737.35 a troy ounce, while silver for March delivery rose 0.62% to trade at USD33.91 a troy ounce.
