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Copper Drops as Chinese Manufacturing Slows

December 16, 2014 at 9:38 by Vladimir Vyun

Copper futures declined today as manufacturing in China, the biggest user of the metal, contracted. The HSBC Flash China Manufacturing Purchasing Managers’ Index fell from 50.0 in November to 49.5 in December, trailing analysts’ expectations. It was the lowest level in seven months, and what is even worse a reading below 50.0 indicates decline of the sector. It is a bad sign for copper, though it may prompt the Chinese to stimulate the economy, and this would a positive event for the base metal.

China’s data was not the only reason for worry. While economic reports from the United States are good for the most part nowadays, some of US indicators were not particularly positive. Among them was the New York manufacturing index that fell unexpectedly, demonstrating a negative reading for the first time in almost two years.

March futures for delivery of copper declined 0.5 percent to $2.8640 per pound as of 9:33 GMT on COMEX.

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