US copper futures finished a choppy on Thursday session in positive territory, with a weaker dollar and stabilising equity markets providing the impetus for the short-covering move higher, analysts said.
Copper for December delivery settled up 3.95 cents at $3.3025 a lb. on the New York Mercantile Exchange's Comex division, after dealing in a session range between $3.23 and $3.3220. David Meguro, metals analyst with Learn Trading in Chicago, said December copper would likely continue to consolidate near the $3.30 level, with worries about slowing economic growth keeping the market's near-term upside held in check.
Final futures volume was estimated at 11,589 lots compared with the 12,716 lots recorded on Wednesday. Open interest in Comex copper futures declined 224 lots to 68,932 contracts as of September 5. US data on Thursday boosted the market's sentiment, pointing to better economic strength despite turmoil in the credit market and a slumping housing sector.
The number of US workers seeking jobless aid fell more than expected last week and the service sector grew steadily in August, while a third report showed US worker productivity was stronger in the second quarter than earlier estimated. The Labour Department said the number of applications last week for state unemployment benefits dropped 19,000 to a seasonally adjusted 318,000.
US service sector growth held steady in August, although employment conditions deteriorated to their weakest in nearly five years, according to the Institute for Supply Management. The services index held at 55.8, signalling further growth in the sector. However, separate data from the Mortgage Bankers Association showed the percentage of US mortgages entering foreclosure hit a record high in the second quarter.