A tepid return to the market by investors and traders from China tugged down copper futures to their three-week trough on Tuesday, according to Reuters.
As the world's top consumer of the reddish metal, China this past weekend finished one week of observing the Lunar New Year. But economic data from Germany, the euro zone's largest economy, tempered losses endured by the base metal.
"We need to see more substance in terms of underlying demand if the run up in prices is to be sustained. All eyes were on the return of the Chinese. It's still early to say but yes it's been a no show so far," analyst Duncan Hobbs with Macquarie told Reuters on Tuesday. "Also there are reports circulating that the Chinese government may start to tighten" its policies regarding the strength of the yuan.
At 11:26 a.m. on Tuesday, copper futures dropped 2.14 percent, an 0.0805 cent loss to $3.6735 per pound.
The Wall Street Journal reports Chinese equities were slipping on Tuesday amid concerns for the Asian nation's anticipated action to address the property market.
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