COMEX Copper futures edged up further today as supportive cues from Asian equities ensured that a rally from near three week lows continues for the red metal. COMEX Copper is currently trading at $ 3.08 per pound, up 0.59% on the day. MCX Copper futures are currently trading at Rs 461 per kg, up 0.47% on the day. Asian equities rose today as anxiety related to the political worries in Italy showed signs of easing. Stocks are up 1.80% in Shanghai and the benchmark indices in Hong Kong and Japan have added nearly 1% on the day. A strong surge in US equities overnight also helped sentiments for risky assets. DOW recovered impressively yesterday, adding 1.26% on the day.
Economic data was supportive for the US. The world’s largest economy grew at an annualized rate of 2.2% in first quarter of 2018. Consumer spending, the biggest contributor to the economy, slowed after a surge that was partly caused by people replacing property destroyed in the summer hurricanes. However, it was partly offset by strong business investment. Spending rose by 1%, revised down from the 1.1% rate reported in the initial estimate.
In another set of data, the Federal Beige book hinted that it will raise interest rates in June saying that US economic activity expanded moderately in late April and early May with few shifts in the pattern of growth. This was the chief assessment of the Feds Beige Book, a collection of anecdotal readings on the economy published eight times a year. The Fed said "Manufacturing shifted into higher gear" with most districts reporting a pickup in industrial activity and a third of the Districts classifying activity as "strong."