Weak China data drags down copper futures
Copper futures ended lower in the domestic market on Friday as investors and speculators exited positions in the industrial metal after weak China FDI data signaled a cooling recovery in the world’s second biggest economy, darkening the demand outlook for industrial metals. China’s inbound FDI stood at USD 8.7 billion in April 2014, up 3.4 per cent, year on year. However, the number was less than March’s USD 12.24 billion. China is the world’s biggest consumer of the base metal, accounting for 40 per cent of global copper consumption. Investors cast aside strong US home construction data as starts jumped to the highest level since November in April 2014, signaling a pickup in the US housing market. Copper futures may rise today as China vowed to fasten the pace of financial reforms, raising hopes of a growth rebound, lifting the demand outlook for industrial metals. At the MCX, copper futures for June 2014 contract closed at Rs. 410.20 per 1 kg, down by 1.33 per cent, after opening at Rs. 414.05, against the previous closing price of Rs. 415.75. It touched an intra-day low of Rs. 409.30.
Copper futures ended lower in the domestic market on Friday as investors and speculators exited positions in the industrial metal after weak China FDI data signaled a cooling recovery in the world’s second biggest economy, darkening the demand outlook for industrial metals. China’s inbound FDI stood at USD 8.7 billion in April 2014, up 3.4 per cent, year on year. However, the number was less than March’s USD 12.24 billion. China is the world’s biggest consumer of the base metal, accounting for 40 per cent of global copper consumption. Investors cast aside strong US home construction data as starts jumped to the highest level since November in April 2014, signaling a pickup in the US housing market. Copper futures may rise today as China vowed to fasten the pace of financial reforms, raising hopes of a growth rebound, lifting the demand outlook for industrial metals. At the MCX, copper futures for June 2014 contract closed at Rs. 410.20 per 1 kg, down by 1.33 per cent, after opening at Rs. 414.05, against the previous closing price of Rs. 415.75. It touched an intra-day low of Rs. 409.30.
