Base Metals Preview: Copper Holds Up On Chinese PMI Numbers

Choppy moves continued for COMEX Copper as a staggered recovery from a one month low extended. A frail undertone in equities and strength in US dollar weighed on the metal. However, overall sentiments remained somewhat supported on manufacturing data from China. The private Caixin/Markit PMI, which focuses on small and mid-size businesses in China, came in at 51.1 for April after coming in at 51 in the previous month. A reading above 50 indicates expansion, while a reading below that signals contraction. This followed the release of official April manufacturing PMI data on Monday, which showed that expansion in Chinas manufacturing sector slowed slightly. The Purchasing Managers Index (PMI) fell to 51.4 in April, from 51.5 in March. However, on a net to net basis, both the indices remained in expansion mode and kept the red metal from witnessing any major correction. COMEX Copper futures are currently trading at $ 3.08 per pound, up half a percent on the day. MCX Copper futures closed at Rs 455.45 per kg in last session, almost unchanged on the day.