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MTECHTIPS:-Copper near 7-week high as China inflation data adds to stimulus hopes

MTECHTIPS:-Copper near 7-week high as China inflation data adds to stimulus hopes

Copper futures held near the prior session’s seven-week high on Thursday, as weak China inflation data reinforced views that Beijing will roll out fresh support measures soon for the world’s second largest economy. Copper for December delivery on the Comex division of the New York Mercantile Exchange inched up 0.6 cents, or 0.26%, to trade at $2.443 a pound during morning hours in London. Government data released earlier showed that Chinese producer prices fell by a more-than-expected 5.9% in August, the 42nd straight monthly decline and the worst reading since October 2009. Consumer prices rose 2.0% last month, above expectations for 1.8% and up from 1.6% in July. Non-food inflation remained subdued at 1.1%, unchanged from a month earlier. The soft inflation data added to speculation policymakers in Beijing will have to introduce further stimulus measures to boost growth. Trade data on Tuesday revealed that China’s imports shrank far more than expected in August, falling for the 10th straight month. A slowdown in domestic demand indicated a recovery in the broader economy remains fragile and may need further government stimulus. The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year. A day earlier, copper hit an intraday peak of $2.475, the most since July 21, before trimming gains to end at $2.436, up 0.2 cents, or 0.1%.
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