Copper futures were higher during European morning hours on Monday, as
appetite for growth-linked assets strengthened amid optimism over the
improved global economic outlook.
Copper is sensitive to the economic growth outlook because of its widespread uses across industries.
On the Comex division of the New York Mercantile Exchange, copper futures for March delivery traded at USD3.685 a pound during European morning trade, up 0.85% on the day.
New York-traded copper prices rose by as much as 1% earlier in the session to hit a daily high of USD3.688 a pound. Futures rose to USD3.758 on January 3, the strongest level since October 18.
Copper traders were focusing on China’s economic outlook. Government data last week showed that China’s trade surplus widened unexpectedly in December, adding to signs of recovery in the world’s second largest economy.
Chinese exports grew 14.1% from a year earlier in December, blowing past expectations for a 5% gain and up from a 2.9% increase in November.
Imports expanded by 6% from a year earlier, beating expectations for a 3.5% increase and following on from zero growth the previous month.
Market players were now looking ahead to a report on fourth quarter gross domestic product to be released on Friday, along with data on industrial production and retail sales.
China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Copper prices found additional support amid optimism over the improved economic outlook for the euro zone.
The euro rallied to an 11-month high against the U.S. dollar, as demand for the single currency continued to be underpinned after European Central Bank President Mario Draghi said last week that a gradual recovery in the euro zone economy would begin this year.
The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was down 0.1% to trade at 79.51.
A weaker dollar boosts demand for raw materials as an alternative investment and makes dollar-priced commodities cheaper for holders of other currencies.
Investors now looked ahead to a speech by Federal Reserve Chairman Ben Bernanke on monetary policy and the recovery from the global financial crisis later Monday, amid speculation that the Fed chairman would quash speculation over an earlier-than-expected end to the central bank’s quantitative easing program.
Copper is sensitive to the economic growth outlook because of its widespread uses across industries.
On the Comex division of the New York Mercantile Exchange, copper futures for March delivery traded at USD3.685 a pound during European morning trade, up 0.85% on the day.
New York-traded copper prices rose by as much as 1% earlier in the session to hit a daily high of USD3.688 a pound. Futures rose to USD3.758 on January 3, the strongest level since October 18.
Copper traders were focusing on China’s economic outlook. Government data last week showed that China’s trade surplus widened unexpectedly in December, adding to signs of recovery in the world’s second largest economy.
Chinese exports grew 14.1% from a year earlier in December, blowing past expectations for a 5% gain and up from a 2.9% increase in November.
Imports expanded by 6% from a year earlier, beating expectations for a 3.5% increase and following on from zero growth the previous month.
Market players were now looking ahead to a report on fourth quarter gross domestic product to be released on Friday, along with data on industrial production and retail sales.
China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Copper prices found additional support amid optimism over the improved economic outlook for the euro zone.
The euro rallied to an 11-month high against the U.S. dollar, as demand for the single currency continued to be underpinned after European Central Bank President Mario Draghi said last week that a gradual recovery in the euro zone economy would begin this year.
The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was down 0.1% to trade at 79.51.
A weaker dollar boosts demand for raw materials as an alternative investment and makes dollar-priced commodities cheaper for holders of other currencies.
Investors now looked ahead to a speech by Federal Reserve Chairman Ben Bernanke on monetary policy and the recovery from the global financial crisis later Monday, amid speculation that the Fed chairman would quash speculation over an earlier-than-expected end to the central bank’s quantitative easing program.
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