Copper Lingers Around Three Week Lows, Economic Cues Mixed

COMEX Copper tested a near three week low yesterday before edging up a bit amid mixed economic data and bargain buying. World stocks extended losses amid continued worries over global trade and a hefty slide in commodities. Some recovery emerged in major stock indices today after the frantic correction yesterday and COMEX Copper is currently trading at $ 3.04 per pound, down 0.20% on the day. MCX Copper futures are currently trading at Rs 458.25 per kg, down marginally on the day. The counter tested a low of Rs 457.60 per kg. Some buying is seen emerging around the present levels.

Meanwhile, on the positive side for the metal, the US housing starts jumped in May. The Commerce Department said housing starts soared by 5% to an annual rate of 1.350 million in May after tumbling by 3.1% to a revised rate of 1.286 million in April. With the latest increase, housing starts reached their highest annual rate since hitting 1.354 million in July of 2007. Single-family starts jumped by 3.9% to 936,000, while multi-family starts surged by 7.5% to 414,00. However, the Commerce Department said building permits dropped by 4.6% to an annual rate of 1.301 million in May after falling by 0.9% to a revised rate of 1.364 million in April. Building permits are an important indicator of future housing demand.

German economy is forecast to expand at slower pace this year and next as global economic risks increased significantly. In the Summer Forecast, the think tank projected the economy to expand 1.8% each this year and next. Earlier, the IFO had forecast 2.6% growth for 2018 and 2.1% in 2019. The agency said economic capacity shortages will persist over the forecasting period, accompanied by a consolidation in both wage and price increases. Eurozone construction output increased in April, after falling in the previous three months. Construction output advanced 1.8% month-over-month in April, reversing a revised 0.2% drop in March. This was the sharpest rate of growth since February 2017.