Copper futures on Tuesday were ebbing and flowing amid concerns about reductions to supplies of the base metal and speculation that the U.S. Federal Reserve will reduce its economy-spurring stimulus measures, according to Bloomberg.
The non-manufacturing index of the Institute for Supply Management for the U.S. pushed to 56 last month, advancing well past Bloomberg-polled economists' median projection of 53.1 for this month. The metric measured at 52.2 during the month prior.
"Everyone is speculating when Fed may reduce stimulus and that's the key driver for all markets," senior trader Hwang Il Doo with Korea Exchange Bank Futures Co. in Seoul told the publication on Tuesday, noting reductions to inventories in warehouses in London and China would minimize dives in prices of the base metal.
At 9:39 a.m. on Tuesday, copper futures gained 1.03 percent, a 0.0325-cent rise to $3.2005 per pound.
Reuters reports the base metal also endured gains on Tuesday as the U.S. dollar dove in value against rival currencies. China, which leads the U.S. for consumption of copper, is poised to release economic data later this week that is likely to impact the price of the base metal.
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