IV:Copper futures bounce off 3-week low; China data eyed
Investing.com - Copper futures bounced off a three-week low during European morning hours on Thursday, with traders looking ahead to key Chinese economic data on Friday for clues on the health of the world’s second largest economy.
On the Comex division of the New York Mercantile Exchange, copper futures for March delivery traded at USD3.625 a pound during European morning trade, up 0.5% on the day.
New York-traded copper prices rose by as much as 0.6% earlier in the session to hit a daily high of USD3.628 a pound. Copper future prices fell to USD3.600 a pound on Wednesday, the weakest level since December 31.
Many analysts expect China's fourth quarter growth figures due Friday to show the world's second largest economy continued to bounce back from its worst slump since the 2008 financial crisis.
Data from China’s National Bureau of Statistics could show gross domestic product expanded 7.8% in the fourth quarter from a year earlier.
The Asian nation is also set to release reports on industrial production and retail sales.
China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Weakness in the U.S. dollar also contributed to gains, as sentiment remained upbeat after a senior European Central Bank policymaker said Wednesday that the situation in the euro zone had stabilized.
The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was down 0.15% to trade at 79.72.
A weaker dollar boosts demand for raw materials as an alternative investment and makes dollar-priced commodities cheaper for holders of other currencies.
Copper traders were also looking ahead to U.S. economic data later in the day. The country was to produce official data on building permits and housing starts, in addition to the weekly government report on initial jobless claims and data on manufacturing activity in Philadelphia.
Focus was expected to remain on the U.S. economy, amid growing uncertainty over how the country will tackle the USD16.4 trillion debt ceiling that it reaches in February.
Republicans lawmakers have stated they will demand major spending cuts in exchange for any agreement to raise the debt limit, however President Barack Obama said he won't negotiate on the issue.
Failing to raise the debt ceiling could lead to a first-ever U.S. default that could roil financial markets.
Elsewhere on the Comex, gold for February delivery dipped 0.1% to trade at USD1,681.15 a troy ounce, while silver for March delivery lost 0.3% to trade at USD31.45 a troy ounce.
