MCX Copper futures added modest gains after easing in the last session. The metal is tracking the surge in COMEX Copper, which hit a ten-day high in Asian trades today. The red metal had dropped to a two month low last week before edging up and is seen holding onto its recovery after the US the Labor Department reported payrolls in the US rose less than projected in January as retailers cut back after the holidays and government hiring fell. However, COMEX Copper slipped after its initial surge and is quoting at $3.2385, barely unchanged on the day. MCX Copper quotes at Rs 447, up Rs 2.30 per kg on the day or half a percent.
Copper dropped in intraday trades after a tepid opening for the European stocks. German manufacturing turnover fell a seasonally-and-working-day adjusted 1.5% from November, when it grew 2.4%. In October, turnover fell 0.2%. Turnover in Germany’s manufacturing sector shrunk in December, after robust growth in the previous month, data released by the Federal Statistical Office showed on Monday.
The economic data out last week was largely supportive for copper. The first week of every month brings us a whole set of Manufacturing and Service sectors Purchasing Managers Indices (PMI) data and the latest releases have mostly been in tune with the idea that the world economy is expanding at a decent pace. The US manufacturing PMI has slipped but the critical services sector in the country is doing well. The US services PMI has bounced in January from two consecutive declines and the companies in services industry are reporting better business conditions and adding jobs.
In Eurozone, the Markit Composite PMI, which gauges business activity across companies, has hit its highest level in two and half years -, which is a very good sign from the perspective of overall economic health. WTI Crude jumped above $100 per barrel following non-farm data- hitting its highest levels in nearly five weeks. MCX Crude oil futures also followed this movement and broke above Rs 6100 in a convincing fashion.
The US dollar has dropped in last few days and the weakness is supporting the copper prices. The greenback had hit a two month high against the Euro as the Federal Reserve said it will trim monthly bond buying by $10 billion after deciding in December to reduce purchases by the same amount as the economy improved, helping to end gold’s 12-year bull run. The US currency quotes at 1.3600 against the Euro right now.