Copper prices rose on Thursday as the Chinese and eurozone manufacturing sectors expanded at a faster rate than analysts originally projected.
According to Bloomberg, copper for December delivery rose 0.4 percent to $3.029 a pound by 7:32 a.m. on the Comex in New York. The contract for delivery in three months gained 0.6 percent to $6,671 a metric ton on the London Metal Exchange. A gauge of Chinese factory activity from HSBC Holdings Plc and Markit Economics showed a preliminary October reading of 50.4, greater than the median estimate of 50.2 in a Bloomberg News survey. China is the world's largest importer of the red metal.
As the Binary Tribune reported, eurozone data also showed encouraging signs of economic growth alongside the rising Chinese numbers. This has temporarily quelled widespread concerns of a global economic slowdown. While measures of manufacturing activity in France showed signs of a contraction, Germany's manufacturing sector posted gains that beat analysts expectations, boosting the economic outlook for the eurozone and giving a level of support to industrial metals as demand increases.
Copper could be headed for a tumble in the future, the Binary Tribune noted, on the news that sub-indices of the health of the manufacturing sector in the eurozone showed that trouble could be on the horizon.
"While the survey suggests the euro area has so far avoided a slide back into recession this year, a renewed downturn cannot be ruled out," said Chris Williamson, a Chief Economist at Markit.
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