Copper Pares Drop in New York Before German Manufacturing ReportAgnieszka Troszkiewicz
Copper trimmed declines in New York before a report that may show a drop in manufacturing orders in Germany, the third-largest user of the metal.
Orders dropped 0.5 percent in March from a 2.3 percent gain the month earlier, a report at 11 a.m. London time may show. Australia cut its benchmark interest rate to a record of 2.75 percent in an economy where inflation is contained, mining spending is predicted to crest and credit growth is subdued.
“Aggregate economic momentum is still generally soft,” Andrew Shaw, an analyst at Credit Suisse Group in Singapore, said by e-mail today. “The markets seem to be swinging gently from one news point to another.”
Copper for delivery in July fell 0.1 percent to $3.3075 a pound by 4:55 a.m. on the Comex in New York after falling 0.1 percent yesterday. The contract had earlier today dropped as much as 1.1 percent. Prices on the London Metal Exchange, which was closed for a holiday yesterday, were up 0.3 percent.
European Central Bank President Mario Draghi said yesterday that further interest-rate cuts are possible after reducing them to a record low last week.
China’s customs department will release April trade data tomorrow and the statistics bureau will announce consumer and producer price growth on May 9.
“Base metals remain highly leveraged to China demand, but rising inventory levels have increased the influence of supply conditions lately,” Mark Pervan, an analyst at Australia & New Zealand Banking Group Ltd., wrote in a report today.
On the LME, aluminum, zinc, and lead gained and nickel and tin fell.