Forexpros – Copper futures eased up on Thursday, as markets awaited the outcome of the European Central Bank’s policy meeting later in the day and hoped for positive results at a critical two-day European Union summit.
On the Comex division of the New York Mercantile Exchange, copper futures for March delivery traded at USD3.567 a pound during European morning trade, gaining 0.32%.
It earlier rose by as much as 0.4% to trade at a daily high of USD3.570 a pound.
European leaders were to begin a two-day summit in Brussels to discuss proposed changes to EU treaties which would allow for greater fiscal integration and stricter enforcement of budgetary discipline in the single currency bloc.
But expectations for a breakthrough were dampened on Wednesday, after a senior German official expressed pessimism over the outcome of the summit.
Focus on the summit has intensified since ratings agency Standard & Poor’s placed 15 euro zone nations, including AAA-rated Germany and France, on review for credit downgrades due to the region’s deepening financial crisis.
Also Thursday, the ECB was expected to cut interest rates by 0.25% at its policy meeting, a move which would take it back to a record-low 1%.
Investors will also be looking for any hints the ECB will boost its bond-buying program to support the region’s struggling periphery and help stabilize euro zone bond markets.
Europe as a region is second after China in global demand for the industrial metal and worries over its economic growth have kept copper prices under pressure in recent weeks.
Copper traders also held to the sidelines ahead of the release of a slew of Chinese economic data, including inflation and industrial output, on Friday.
The data was likely to show further signs of cooling in the world’s second biggest economy, giving Beijing more room to introduce further monetary easing measures.
China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year. Copper is sensitive to the economic growth outlook because of its widespread uses across industries.
Elsewhere on the Comex, gold for February delivery dipped 0.1% to trade at USD1,742.85 a troy ounce, while silver for March delivery added 0.2% to trade at USD32.68 a troy ounce.
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