Forexpros – Copper futures were little changed during European morning hours on Thursday, as market participants awaited further clues over the timing of fresh easing measures in the U.S. and China to stimulate their respective economies.
On the Comex division of the New York Mercantile Exchange, copper futures for September delivery traded at USD3.352 a pound during European morning trade, easing up 0.1%.
Prices were stuck in a trading range of USD3.367 a pound, the daily high and a session low of USD3.342 a pound.
On Wednesday, copper futures hit USD3.334 a pound, the lowest since August 3, after stronger-than-expected U.S. data over the week lowered expectations for fresh easing measures by the Federal Reserve.
Data on Wednesday showed that industrial production in the U.S. rose by 0.6% in July, beating expectations for a 0.5% increase, following a 0.1% rise the previous month.
The data came one day after a report showed that U.S. retail sales snapped four successive months of declines in July, jumping 0.8%, outstripping expectations for a 0.3% increase and dampening expectations for another round of quantitative easing by the U.S. central bank.
But investors remained cautious after data on Wednesday showed that a gauge of manufacturing activity in New York fell into contraction territory in August for the first time since October 2011.
Market participants will be watching a slew of U.S. data later in the day, in an attempt to assess the strength of the U.S. economic recovery and the need for further stimulus.
The U.S. was to publish official data on building permits, as well as weekly government data on unemployment claims. The country was also to release official data on housing starts and a report on manufacturing activity in the Philadelphia area.
Copper prices drew support from comments by Chinese Premier Wen Jiabao late Wednesday, saying that slowing inflation provides “growing room for monetary policy operation” to spur growth in the world’s second largest economy.
The remarks added to ongoing speculation policy makers in Beijing will cut banks’ reserve requirements or benchmark interest rates again after inflation cooled to a 30-month low in July.
The People’s Bank of China has lowered both twice so far this year in an effort to boost lending and stimulate growth.
China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Elsewhere on the Comex, gold for October delivery eased up 0.05% to trade at USD1,605.05 a troy ounce, while silver for September delivery added 0.1% to trade at USD27.83 a troy ounce.
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