MTECHTIPS:- Copper resumes decline as China worries linger
MTECHTIPS:- Copper resumes decline as China worries
Copper futures declined on Monday, as worries over China’s slowing economy dampened demand for the red metal. Copper for September delivery on the Comex division of the New York Mercantile Exchange shed 1.8 cents, or 0.75%, to trade at $2.329 a pound during morning hours in London. The Shanghai Composite dropped 1.4% on Monday amid reports that Beijing will scale back its market intervention efforts, which resulted in two straight days of 5% rallies in Shanghai last week. Prices of the red metal sank to a six-year low of $2.202 on August 24 as concerns over the health of China’s economy and steep declines on Chinese stock markets dampened appetite for the red metal. The turmoil in markets began when China unexpectedly devalued the yuan on August 11, sparking fears that the economy may be slowing at a faster than expected rate. Market players looked ahead to a pair of manufacturing reports due out of China on Tuesday for further hints over the strength of the world’s second largest economy. The official China manufacturing purchasing managers’ index was expected to fall to 49.7 in August from 50.0 in July. Meanwhile, the final reading of the Caixin/Markit manufacturing purchasing managers’ index was forecast to inch up to 47.2 from a preliminary reading of 47.1, which was the lowest since July 2013.