IV:Copper hovers close to 7-month low with U.S. jobs report in focus
Investing.com - Copper futures traded just above a seven-month low during European morning hours on Wednesday, as investors remained cautious ahead of key U.S. jobs data later this week for clues to the health of the world's largest economy.
Copper is sensitive to the economic outlook because of its widespread uses in construction and manufacturing.
On the Comex division of the New York Mercantile Exchange, copper futures for May delivery traded at USD3.361 a pound during European morning trade, down 0.5% on the day.
New York-traded copper prices fell by as much as 1% earlier in the session to hit a daily low of USD3.345 a pound. Comex copper prices fell to USD3.341 a pound on Monday, the weakest level since August 16.
Copper prices remained under pressure after weak manufacturing and employment data from the euro zone on Monday fuelled concerns over the outlook for growth.
Revised data showed that manufacturing activity in the euro zone contracted for the 20th consecutive month in March, while the jobless rate hit a record high of 12%.
Sentiment also remained fragile amid concerns over the potential implications of a bailout for Cyprus.
Market players now looked ahead to a number of economic reports from the U.S. later in the day to further asses the strength of the country’s economy after data on Tuesday showed that U.S. factory orders rose by the most in five months in February.
The U.S. was to release the ADP nonfarm payrolls report, while the Institute of Supply Management was release a report on U.S. service sector activity later in the session.
The U.S. is second behind China in global copper demand.
Meanwhile, in China, HSBC said its services purchasing managers’ index rose to a six-month high of 54.3 in March, while the official version of the services PMI rose to 55.6 in March from 54.5 in February.
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 dipped 0.45% to trade at USD1,568.85 a troy ounce, while silver for May delivery fell 0.6% to trade at USD27.08 a troy ounce.
