Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Copper stumbles to 7-week low on China recovery concerns

Published 08/13/2014, 03:13 AM
Updated 08/13/2014, 03:13 AM
Copper falls to 7-week low after China data misses estimates

Investing.com - Copper futures fell to a seven-week low on Wednesday, after disappointing Chinese economic data fuelled concerns over the health of the world’s second largest economy.

On the Comex division of the New York Mercantile Exchange, copper for September delivery declined 0.51%, or 1.6 cents, to trade at $3.139 a pound during European morning hours.

Prices fell to a session low of $3.134 a pound earlier, the weakest level since June 25. A day earlier, copper futures lost 0.63%, or 2.0 cents, to settle at $3.154 a pound.

Futures were likely to find support at $3.123, the low from June 25 and resistance at $3.189, the high from August 12.

Official data released earlier showed that industrial production in China rose at an annualized rate of 9% in July, in line with forecasts and slowing from an increase of 9.2% a month earlier.

Fixed asset investment, which tracks construction activity, increased 17.0% in the January-July period, below expectations for a gain of 17.4% and slowing from 17.3% in the January-June period.

A separate report showed that Chinese retail sales rose by a smaller-than-forecast 12.2% last month, compared to a 12.4% gain in June.

Meanwhile, Chinese bank lending and money supply growth for July also came in below expectations, underlining concerns about slowing growth in the world's biggest consumer of the industrial metal.

Chinese new loans dropped to 385.2 billion yuan last month from 1.08 trillion yuan in June and missed forecasts of 780 billion yuan.

The broad M2 money supply rose 13.5% on year in July, compared to growth of 14.7% a month earlier and below forecast for a 14.5% increase.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

China's total social financing aggregate, a broad measure of liquidity in the economy, fell to 273.1 billion yuan in July, the lowest monthly reading since October 2008.

Copper prices have been on a downward trend in recent sessions amid indications of a slowdown in demand from China, the world’s largest consumer of the red metal.

Official trade data released August 8 showed that China’s copper arrivals fell 2.9% month-on-month in July, declining for a third straight month.

Elsewhere on the Comex, gold for December delivery dipped 0.06%, or 80 cents, to trade at $1,309.80 a troy ounce, while silver for September delivery picked up 0.34%, or 6.8 cents, to trade at $19.97 an ounce.

Market players continued to monitor geopolitical developments from Ukraine and the Middle East.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.