London copper climbs ahead of China growth data

21 Oct, 2014

SYDNEY: London copper edged up on Tuesday but stayed near six-month lows, with focus on data expected to show struggling economic growth in China that could boost a drive for stimulus, bolstering metals prices.

FUNDAMENTALS

Three-month copper on the London Metal Exchange had climbed 0.7 percent to $6,609 a tonne by 0105 GMT, paring losses of 1.2 percent from the previous session. Copper prices hit a six-month trough of $6,530 a tonne on Friday, having dropped 10 percent this year.

The most-traded December copper contract on the Shanghai Futures Exchange edged up 0.2 percent to 47,260 yuan($7,718) a tonne.

China is expected to post its weakest growth since the global financial crisis in the third quarter as a property downturn weighs on manufacturing and investment, raising the heat on Beijing to unveil more stimulus measures.

Germany and France sought to paper over deep differences about how to buoy a faltering European economy, promising on Monday to unveil joint proposals on strengthening investment and competitiveness by early December.

Higher mine output may not necessarily lead to a surplus in the market for refined copper cathodes next year, as smelters are experiencing a bottleneck of raw material, Europe's biggest copper smelter Aurubis said on Monday.

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or MARKETS NEWS * Asian stocks balked at the starting gate on Tuesday, as investors looked past solid gains on Wall Street overnight to the Chinese economic growth figures due later.

Copyright Reuters, 2014

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