WSJ: Comex Copper Edges Higher On US, China Demand View
--Comex May copper recently up 2.05 cents, or 0.5%, at $3.8985 a pound
--Traders bet U.S., Chinese economic data will point to higher copper demand
--Futures gained 0.6% last week, taking 2012 gains to 13%
By Matt Day
Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--Copper futures ticked higher on Monday on hopes that economic readings expected this week on the U.S. and China, the world's top two consumers of the industrial metal, would point to higher demand.
The most actively traded copper contract, for May delivery, was recently up 2.05 cents, or 0.5%, at $3.8985 a pound on the Comex division of the New York Mercantile Exchange.
Investors were awaiting a set of U.S. housing-sector data this week, as well as a closely watched reading on China's manufacturing sector set for release on Thursday.
A mostly upbeat outlook on the U.S. economy and hopes that China's government would take steps to support growth there pushed copper prices sharply higher early this year. But futures have struggled to hold gains near the $4 a pound mark since, with futures confined largely to sideways trading.
Evidence is mounting that Beijing is already making it easier for businesses to get credit, raising the prospect for stronger copper demand in the months ahead, said Hussein Allidina, an analyst with Morgan Stanley, in a note.
But not all traders are convinced. Copper slumped in the middle of last week as China's premier endorsed tight controls on the country's property market, a major driver of copper demand there. Copper is widely used in a wide range of industries, including automobiles, electronics and construction, making it sensitive to shifts in the economic outlook.
"The moves of the past week seem to indicate a market starting to position for some downside," Marc Ground, an analyst with Standard Bank, said in a note.
Last week, futures gained 0.6%, taking their gains so far in 2012 to 13%.
Copper slipped on Friday, as weaker than expected readings on U.S. industrial production and consumer sentiment hit the demand outlook for the metal.
