Investing.com - Copper futures extended losses to hit an
eight-week low on Thursday, following the release of disappointing
economic data from Germany.
On the Comex division of the New York Mercantile Exchange,
copper for September delivery declined 0.18%, or 0.6 cents, to
trade at $3.106 a pound during European morning hours.
Prices fell to a session low of $3.105 a pound earlier, the
weakest level since June 20.
A day earlier, copper futures lost 1.35%, or 4.2 cents, to
settle at $3.112 a pound after disappointing monthly data cast
doubt over the Chinese economy.
Futures were likely to find support at $3.072, the low from June
20 and resistance at $3.157, the high from August 13.
Germany's gross domestic product shrank by 0.2% in the three
months to June, the first drop since 2012. Economists had forecasts
a contraction of 0.1%. First quarter growth was also revised down
to 0.7% from 0.8% previously.
Earlier Thursday official data showed that French GDP was flat
in the second quarter, the second consecutive quarter of
stagnation. Economists had expected an expansion of 0.1%.
Europe as a region is third in global demand for the industrial
Meanwhile, concerns over the health of China's economy mounted
on Wednesday after data showed that industrial production there
rose at an annualized rate of 9% in July, 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%.
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.
New loans dropped to 385.2 billion yuan last month from 1.08
trillion yuan in June, while social financing aggregate, a broad
measure of liquidity in the economy, fell to 273.1 billion yuan,
the lowest monthly reading since October 2008.
Copper prices have been on a downward trend in recent weeks amid
indications of a slowdown in demand from China, the world's largest
consumer of the industrial 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
Elsewhere on the Comex, gold for December delivery dipped 0.07%,
or 90 cents, to trade at $1,313.60 a troy ounce, while silver for
September delivery shed 0.06%, or 1.2 cents, to trade at $19.83 an
offers an extensive set of professional tools for the financial
Read more News on Investing.com and download the new
Investing.com Stocks & Forex App