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Copper Gains on China’s Stimulus Speculations

April 1, 2014 at 20:06 by Vladimir Vyun

Copper rose today, paring the previous drop, on speculations that slowing China’s manufacturing will spur the government of the Asian country to stimulate economic growth. The HSBC China Purchasing Managers’ Index fell from 48.5 in February to 48.0 in March. The reading below 50.0 indicates contraction of the sector. The report said:

The latest deterioration was the strongest since July 2013, and reflected quicker reductions of both output and total new orders, despite new business from abroad expanding for the first time in four months. Firms cut their workforce numbers and purchasing activity, while both input and output prices fell to the greatest extent since August 2012.

The official data was different, showing stable manufacturing growth.

China’s Premier Li Keqiang said last week that the government is ready to take steps stimulating the economy in case of necessity. China is the biggest user of the industrial metal.

Futures for delivery of copper in May gained $0.0135 (0.45 percent) to $3.0390 per pound as of 20:04 GMT on COMEX today.

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