Investing.com - Copper futures came under pressure on Monday, dropping to a seven-day low as sentiment on the industrial metal weakened after data showed the rate of inflation in China rose faster than expected, fuelling speculation that Beijing might delay further easing of monetary policy.
On the Comex division of the New York Mercantile Exchange, copper futures for May delivery traded at USD3.773 a pound during European morning trade, dropping 0.63%.
It earlier fell by as much as 0.75% to trade at USD3.768 a pound, the lowest since March 29.
Trading volumes were expected to be thin during the European session as markets in the U.K. and the euro zone remained closed due to the Easter holiday.
Official data released earlier showed that consumer price inflation in China accelerated by 3.6% in March, up from 3.2% in February and above expectations for a 3.3% increase.
The higher-than-expected reading dampened expectations Beijing will introduce fresh monetary easing measures in the near-term to prop up the world’s second largest economy.
Market players have been searching for clues in regards to Chinese growth prospects amid fears the country is headed towards a ‘hard landing’.
A deeper slowdown in China, the world’s second biggest economy, would impair a global expansion that is already faltering because of the implementation of harsh austerity measures in Europe.
The Asian nation is set to release government data on the size of its economy on April 13. China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Meanwhile, copper prices came under additional pressure as disappointment from Friday’s weak payrolls report carried over to Monday’s session.
The U.S. Department of Labor said nonfarm payrolls rose by a meager 120,000 in March, the lowest since December and well below expectations for a 203,000 increase.
It was the first time since November that hiring failed to top the 200,000 level, renewing concerns over the health of the U.S. economy.
The unemployment rate ticked down to 8.2%, the lowest since January 2009, from 8.3% in February. However, the data showed that the decline stemmed entirely from people dropping out of the labor force.
Elsewhere on the Comex, gold for June delivery rose 0.76% to trade at USD1,642.55 a troy ounce, while silver for May delivery was flat to trade at USD31.74 a troy ounce.
On the Comex division of the New York Mercantile Exchange, copper futures for May delivery traded at USD3.773 a pound during European morning trade, dropping 0.63%.
It earlier fell by as much as 0.75% to trade at USD3.768 a pound, the lowest since March 29.
Trading volumes were expected to be thin during the European session as markets in the U.K. and the euro zone remained closed due to the Easter holiday.
Official data released earlier showed that consumer price inflation in China accelerated by 3.6% in March, up from 3.2% in February and above expectations for a 3.3% increase.
The higher-than-expected reading dampened expectations Beijing will introduce fresh monetary easing measures in the near-term to prop up the world’s second largest economy.
Market players have been searching for clues in regards to Chinese growth prospects amid fears the country is headed towards a ‘hard landing’.
A deeper slowdown in China, the world’s second biggest economy, would impair a global expansion that is already faltering because of the implementation of harsh austerity measures in Europe.
The Asian nation is set to release government data on the size of its economy on April 13. China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Meanwhile, copper prices came under additional pressure as disappointment from Friday’s weak payrolls report carried over to Monday’s session.
The U.S. Department of Labor said nonfarm payrolls rose by a meager 120,000 in March, the lowest since December and well below expectations for a 203,000 increase.
It was the first time since November that hiring failed to top the 200,000 level, renewing concerns over the health of the U.S. economy.
The unemployment rate ticked down to 8.2%, the lowest since January 2009, from 8.3% in February. However, the data showed that the decline stemmed entirely from people dropping out of the labor force.
Elsewhere on the Comex, gold for June delivery rose 0.76% to trade at USD1,642.55 a troy ounce, while silver for May delivery was flat to trade at USD31.74 a troy ounce.