The increased pace of manufacturing last month in the nation hosting the globe's most rapidly developing economic system pulled down copper futures, according to Bloomberg.
The reddish metal endured a second consecutive day of losses after the Purchasing Managers' Index in China gained to 53.3 in April after registering at 53.1 during the month prior. The likelihood of the Asian nation intervening with monetary stimulus to prompt growth in what also is the second-largest global economy slimmed.
"Improvement in China's manufacturing may give an excuse for the nation not to issue additional stimulus immediately, as the Chinese government is still struggling with inflationary pressure," analyst Ken Kajisa with broker ACE Koeki in Tokyo told the news source.
At 1:05 p.m. on Tuesday, copper futures were up 0.33 percent, a 1.25 cent lift to $3.842 per pound.
Reuters reports China's PMI of 53.3 for last month marks the top level of the metric for the Asian nation in 13 months. That high indicates China might be bouncing back from economic slumps registered during the first quarter of the year.
Risk Disclosure
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.