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MTECHTIPS:-Copper futures rise in choppy trade with China in focus

MTECHTIPS:-Copper futures rise in choppy trade with China in focus

Copper futures rose in choppy trade on Monday, as investors continued to monitor wild swings in China’s equity markets. Copper for September delivery on the Comex division of the New York Mercantile Exchange hit an intraday low of $2.307 a pound before turning higher to trade at $2.351 during morning hours in London, up 3.9 cents, or 1.67%. U.S. markets will be closed on Monday for the Labor Day holiday. Meanwhile, Chinese stock markets reopened on Monday after being closed on Thursday and Friday for the World War Two Victory Day parade. The Shanghai Composite took investors on another roller coaster ride, rising almost 2% after the open, only to turn negative after the midday break to end down 2.5%. Copper prices have been under heavy selling pressure in recent weeks as fears of a China-led global economic slowdown spooked traders and rattled sentiment. 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. China’s National Bureau of Statistics on Monday said it has revised down the 2014 GDP growth rate to 7.3% from the previously announced 7.4%. For this year, China has set a growth target of about 7%, the slowest pace in 25 years. The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.

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