London copper steadied on Tuesday, but remained below four-and-a-half month highs seen last week after a surprise drop in German industrial production tempered demand expectations.
The dollar eased and global equity markets fell on Monday after the drop in German industrial output cooled a rally that sent various stock indices to record highs last week.
Germany's industrial output fell 1.8 percent on the month in May, its biggest drop in more than two years, as holiday days ate into working hours, construction slumped and geopolitics weighed, casting a shadow on its role as euro zone motor.
"Given what we saw out of Europe it's fair enough to see a little bit of hold in the rally," said analyst Dominic Schnider of UBS Wealth Management in Singapore.
"We have a positive view on the economy overall. The newsflow from the U.S. should be very good and the topping out from Europe should be modest ... I could not rule out a technical rally to $7,430 but then I would sell it - we still target a surplus this year."
Three-month copper on the London Metal Exchangehad edged down 0.1 percent to $7,119.75 a tonne by 0216 GMT, extending small losses from the previous session. Last week, LME copper prices struck $7,190 a tonne, their highest level since Feb. 19.
The most-traded September copper contract on the Shanghai Futures Exchangeeased 0.4 percent to 50,820 yuan
($8,200) a tonne.
China's economic growth quickened in the second quarter from the previous three months, but further modest government support measures will still be needed, Premier Li Keqiang said on Monday.
Potentially easing supply curbs for copper, Freeport-McMoRan Copper & Gold Inchave agreed a memorandum of understanding with the Indonesian government on contract renegotiations, ministry officials said on Monday, as both sides look to end a six-month dispute that has halted concentrate exports.
Meanwhile, CITIC Resources Holdings Limited <1205.HK> has begun court proceedings against the operator of a bonded warehouse at Qingdao port at the centre of an investigation to metals financing fraud.
Among other metals, broker Triland said that zinc was attracting investment fund buying following a strong weekly close on Friday.
"The price has cleared the horizontal resistance zone around $2,230-35 and with all moving averages pointing higher and the price sitting comfortably above them, the bull trend is strengthening," it said.
"We believed there maybe some correction to come this week, but have been proved wrong, to the consternation of some consumers who may have missed the boat now."
Source: Reuters
The dollar eased and global equity markets fell on Monday after the drop in German industrial output cooled a rally that sent various stock indices to record highs last week.
Germany's industrial output fell 1.8 percent on the month in May, its biggest drop in more than two years, as holiday days ate into working hours, construction slumped and geopolitics weighed, casting a shadow on its role as euro zone motor.
"Given what we saw out of Europe it's fair enough to see a little bit of hold in the rally," said analyst Dominic Schnider of UBS Wealth Management in Singapore.
"We have a positive view on the economy overall. The newsflow from the U.S. should be very good and the topping out from Europe should be modest ... I could not rule out a technical rally to $7,430 but then I would sell it - we still target a surplus this year."
Three-month copper on the London Metal Exchange
The most-traded September copper contract on the Shanghai Futures Exchange
($8,200) a tonne.
China's economic growth quickened in the second quarter from the previous three months, but further modest government support measures will still be needed, Premier Li Keqiang said on Monday.
Potentially easing supply curbs for copper, Freeport-McMoRan Copper & Gold Inc
Meanwhile, CITIC Resources Holdings Limited <1205.HK> has begun court proceedings against the operator of a bonded warehouse at Qingdao port at the centre of an investigation to metals financing fraud.
Among other metals, broker Triland said that zinc was attracting investment fund buying following a strong weekly close on Friday.
"The price has cleared the horizontal resistance zone around $2,230-35 and with all moving averages pointing higher and the price sitting comfortably above them, the bull trend is strengthening," it said.
"We believed there maybe some correction to come this week, but have been proved wrong, to the consternation of some consumers who may have missed the boat now."
