Shutterstock photo
Markets

Copper futures under pressure following China inflation data

Shutterstock photo

Shutterstock photo

Investing.com - Copper futures were lower on Tuesday, after data showed that inflation in China accelerated at a faster rate than expected last month.

The faster-than-expected increase in the rate of inflation dampened hopes policy makers in Beijing could introduce fresh easing measures to boost economic growth in the world's second largest economy.

On the Comex division of the New York Mercantile Exchange, copper futures for September delivery traded at USD3.068 a pound during European morning trade, down 1% on the day.

New York-traded copper prices fell by as much as 1.1% earlier in the session to hit a daily low of USD3.065 a pound.

Official data released earlier showed that consumer prices in China rose 2.7% in June from a year earlier, above expectations for a 2.5% increase and accelerating from a 2.1% rate of increase in May.

The Asian nation will release a report on trade balance figures on Wednesday.

China is the world's largest copper consumer, accounting for almost 40% of world consumption last year.

Investors also awaited the release of the minutes of the Federal Reserve's June meeting on Wednesday, for further hints regarding the direction of U.S. monetary policy.

Fed Chairman Ben Bernanke said last month the bank could begin tapering its USD85 billion-a-month asset purchase program by the end of 2013 and wind it down completely by the middle of 2014 if the economy picks up as the central bank expects.

The Fed's stimulus program is viewed by many investors as a key driver in boosting the price of commodities as it tends to depress the value of the dollar.

Elsewhere on the Comex, gold for August delivery rose 1.4% to trade at USD1,251.95 a troy ounce, while silver for September delivery climbed 1.4% to trade at USD19.30 a troy ounce.

Investing.com - Investing.com offers an extensive set of professional tools for the Forex, Commodities, Futures and the Stock Market including real-time data streaming, a comprehensive economic calendar, as well as financial news and technical & fundamental analysis by in-house experts.

Read more News on Investing.com or Follow us on Twitter at @ Newsinvesting

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Other Topics

ForEx