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China Helps Copper & Brent Crude, WTI Oil Extends Drop

May 22, 2014 at 16:17 by Vladimir Vyun

Today’s economic data from China was better than analysts estimated, allowing some commodities to rally. Copper futures rallied in New York, joined by Brent crude oil, while WTI crude maintained its losses. The HSBC Flash China Manufacturing Purchasing Managers’ Index rose from 48.1 in April to 49.7 in May. This is compared to the median forecast of 48.4. The reading still indicates contraction of the manufacturing sector but with much slower pace.

China, the second biggest world economy and the largest consumer of copper, was showing signs of economic slowdown for some time now. This was promising lower demand for many commodities, hurting the metal and energy markets. Consequently, evidences of positive developments in the Asian economy are positive for raw materials.

July futures for delivery of copper advanced $0.0235 (0.75 percent) to $3.1465 per pound as of 16:12 GMT on COMEX today. Contract for Brent crude added $0.16 (0.14 percent) to $110.71 per barrel on ICE. Meanwhile, prices for WTI crude oil retreated $0.22 (0.21 percent) to $103.85 per barrel on NYMEX.

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