Base Metals Preview: Copper Sees Mixed Moves After Correction

MCX Copper futures should remain supported after a rather steep fall yesterday. The domestic futures slipped after breaking under 460 per kg levels and closed at 457.10 per kg amid a hefty slide in global futures. COMEX Copper currently quotes at $ 3.05 per pound, down 0.36% on the day. MCX futures ended around Rs 456.30 per kg and are likely to see a mixed outing today.

Chinas April exports rose 12.9% from a year earlier, rebounding from a drop in March, while imports grew 21.5%, both growing much faster than expected despite worries over an escalating trade dispute with the United States. That left the country with a trade surplus of $ 28.78 billion for the month. Germanys industrial production grew by more-than-expected 1% month-on-month in March, reversing a 1.7% fall in February, provisional data from Destatis showed. On a yearly basis, industrial output logged a growth of 3.2% versus 2.2% increase in February. Australia seasonally adjusted retail trade turnover showed no variations in March, following a 0.6% rise in February, data from the Australian Bureau of Statistics revealed Tuesday.

Meanwhile, the global manufacturing sector has expanded at a slower pace in April, according to an index published by the China Federation of Logistics and Purchasing (CFLP) on Sunday. The global manufacturing purchasing managers index (PMI) stood at 54.4 last month, down from 55.2 in March, according to the CFLP. The reading marks the second monthly decline in a row but is still at a relatively high level, indicating sound economic expansion around the globe, it said in a statement. The CFLP said the second quarter is usually a high season for the manufacturing sector, which will contribute to further recovery in the global economy.