Copper, Mining Shares Drop as China Factory Data Dims Outlook

  • China factory gauge shows lackluster growth in biggest user
  • Freeport, South32 lead declines among global mining stocks

Metals Rally Running Out of Steam

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Copper dropped and mining stocks led by Freeport-McMoRan Inc. retreated after a Chinese factory gauge contracted and the OECD warned that the global recovery is set to stall this year.

A private index Wednesday showed a 15th straight month of contraction Bloomberg Terminalin May for Chinese manufacturing, while the Organisation for Economic Cooperation and Development said the world economy is slipping into a self-fulfilling “low-growth trap.” Manufacturing in the 19-nation euro area barely grew last month.