MTECHTIPS Copper futures edge higher as sentiment improves

MTECHTIPS:-Copper futures edge higher as sentiment improves

Copper futures edged higher on Tuesday, bouncing off a three-day low as global equities moved higher, boosting the appeal of growth-linked assets. Copper and global equities have traded in tandem in recent months, on the belief share prices act as a proxy for economic sentiment and are a bellwether for copper demand. Copper is sensitive to the economic growth outlook because of its widespread uses across industries. On the Comex division of the New York Mercantile Exchange, copper futures for July delivery traded at USD3.308 a pound during European morning trade, up 0.4% on the day. New York-traded copper prices held in a range between USD3.268 a pound, the session low and a daily high of USD3.323 a pound. Comex floor trading, which was closed for Monday’s U.S. Memorial Day holiday, will resume Tuesday. Market sentiment improved as Japan’s Nikkei stabilized following extreme volatility in recent sessions. European equitie were sharply higher as well, with the EURO STOXX 50 surging 1.3%, France’s CAC 40 gaining 1.3%, while Germany’s DAX 30 rallied 1.1%. Copper’s gains were limited due to a slightly stronger U.S. dollar, as dollar-priced commodities become more expensive to investors holding other currencies when the greenback strengthens.