Copper Swings as Investors Weigh U.S. Data, ECB Monetary Policy

Copper swung between gains and losses as investors weighed upcoming U.S. economic data and a review of interest rates in the euro region.

The contract for delivery in three months was little changed at $7,151.25 per metric ton at 10:30 a.m. in Shanghai after gaining as much as 0.3 percent and losing as much as 0.2 percent. Futures closed at $7,149 on Nov. 4, the lowest level since Oct. 10. The metal has lost 9.8 percent this year.

A government report tomorrow is forecast to show the U.S. economy grew at a 2 percent annualized rate in the third quarter, compared with a 2.5 percent increase in the previous three months. A separate Bloomberg survey of economists indicates ECB President Mario Draghi will keep the region’s refinancing rate on hold at 0.5 percent tomorrow, as banks including UBS AG and Bank of America Corp. are predicting a cut to 0.25 percent. JPMorgan Chase & Co. and BNP Paribas SA are among firms projecting Draghi will hold off on reductions until December.

“Investors are hesitant because the interpretation of the U.S. data and the European monetary policy could indirectly impact when the Fed starts tapering bond purchases,” said Xu Liping, an analyst at HNA Topwin Futures Co. in Shanghai.

Futures for delivery in December fell 0.2 percent to $3.251 a pound on the Comex in New York. The metal for delivery in January on the Shanghai Futures Exchange fell 0.4 percent to 51,420 yuan ($8,434) a ton.

On the LME, zinc rose and tin fell. Aluminum, lead and nickel were little changed.

To contact Bloomberg News staff for this story: Alfred Cang in Shanghai at acang@bloomberg.net

To contact the editor responsible for this story: Brett Miller at bmiller30@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.