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Copper falls to near 2-week low ahead of key China PMI report

Published 22/09/2015, 08:06
© Reuters.  Copper futures reapproach 2-week low ahead of China factory data
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Investing.com - Copper futures re-approached a two-week low on Tuesday, as investors looked ahead to key Chinese manufacturing data later in the week for a fresh indication on the strength of the world's second largest economy.

Copper for December delivery on the Comex division of the New York Mercantile Exchange inched down 2.0 cents, or 0.85%, to trade at $2.368 a pound during morning hours in London.

A day earlier, copper fell to $2.362, the lowest level since September 8, before turning higher to end up 0.2 cents, or 0.1%, at $2.388.

China will release a preliminary reading of the Caixin manufacturing purchasing managers’ index for September on Wednesday amid lingering concerns over a China-led global economic slowdown.

The index is expected to inch up to 47.5 this month from a final reading of 47.3 a month earlier, which was the lowest level since March 2009.

Copper traders consider shifts in the PMI an indicator of China's copper demand, as the industrial metal is widely used by the sector.

Copper prices have been under heavy selling pressure in recent weeks as fears of a China-led global economic slowdown spooked traders and rattled sentiment. Prices of the red metal sank to a six-year low of $2.202 on August 24.

The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.

Elsewhere in metals trading, gold futures for December delivery tacked on 10 cents, or 0.01%, to trade at $1,132.90 a troy ounce as expectations for a Federal Reserve rate hike later this year weighed.

Most market experts believe the Fed will begin raising rates in December after keeping policy steady last week.

Gold fell to a five-and-a-half year low of $1,072.30 on July 24 amid speculation the Fed will raise interest rates for the first time since 2006 at some point this year.

The timing of a Fed rate hike has been a constant source of debate in the markets in recent months.

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