IV:Copper swings between gains and losses after China trade data
Investing.com - Copper futures swung between small gains and losses on Wednesday, following the release of disappointing trade data out of China.
China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
On the Comex division of the New York Mercantile Exchange, copper futures for September delivery traded at USD3.074 a pound during European morning trade, up 0.3% on the day.
New York-traded copper prices held in a range between USD3.032 a pound, the daily low and a session high of USD3.082 a pound.
Official trade data released earlier showed that Chinese exports fell 3.1% from a year earlier in June, confounding expectations for a 4.0% increase.
The report also showed that imports declined 0.7%, bringing the country’s trade surplus to USD27.1 billion for the month, broadly in line with expectations for a surplus of USD27 billion.
The disappointing data came one day after a government report showed that consumer prices in China rose 2.7% in June from a year earlier, above expectations for a 2.5% increase and accelerating from a 2.1% rate of increase in May.
Investors are now looking ahead of the release of the minutes of the Federal Reserve’s June policy meeting later in the trading day, while a speech by Fed Chairman Ben Bernanke was also in focus.
Fed Chairman Ben Bernanke said last month the bank could begin tapering its USD85 billion-a-month asset purchase program by the end of 2013 and wind it down completely by the middle of 2014 if the economy picks up as the central bank expects.
The Fed’s stimulus program is viewed by many investors as a key driver in boosting the price of commodities as it tends to depress the value of the dollar.
Elsewhere on the Comex, gold for August delivery rose 0.5% to trade at USD1,252.35 a troy ounce, while silver for September delivery added 0.2% to trade at USD19.18 a troy ounce.
