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MTECHTIPS:-Copper Up Half A Percent, Weak Chinese Data Could Counter Gains

MTECHTIPS:-Copper Up Half A Percent, Weak Chinese Data Could Counter Gains

Comex copper edged up today as traders continued to resort to bargain hunting amid positive cues from equities and a strong US nonfarm payrolls data. However, poor array ofeconomic releases from China is bound to keep copper under check. The red metal iscurrently quoting at $2.3440 per pound, up half a percent on the day. MCX Copper futuresare trading at Rs 331 per kg, up 0.39% on the day as lows under Rs 330 per kg offered good buying support. However, this recovery could be short lived given the lax cues from latest Chinese data.China announced on Sunday that factory prices in July extended more than three years ofdeclines, indicating that a deflationary scenario is likely to grapple the economy alreadygrowing at weakest pace in decade. China’s exports in July dropped 8.3% from a yearerlier, following a gain of 2.8% in June, customs data released Saturday showed. Imports fell for the ninth month in a row as well, dropping 8.1%. The global economic activity has recovered modestly in Q2 of calendar 2015, noted the RBI in its latest monetary policy statement last week. The US economy rebounded on strongerconsumption growth and steadily improving labour market conditions, though recent wagedata suggest continuing slack. The Euro area has grown at a moderate pace through thefirst half of 2015, supported by consumer spending, easing financing conditions and amodest downturn in still-high unemployment. In Japan, growth slowed in Q2 after an upsidesurprise in Q1, noted the bank.

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