Reuters reported that copper broke 4 day losing streak rising modestly after better than expected French and German growth data boosted the euro and as investors kept hoping for more stimulus measures in China and Europe.

Three month copper on the London Metal Exchange rose 0.5% to USD 7,435.25 a tonne by 1020 GMT, rebounding from a session low of USD 7,366, the lowest level in more than a week.

Copper, which has shed about 12 percent since the beginning of May, has been trapped in a range of USD 7,300 to USD 7,600 over the past three weeks in thin volumes during the European holiday season.

Mr Andrey Kryuchenkov analyst at VTB Capital in London said that "This morning, it's the dollar-euro. The base metals are rebounding along with other markets. There's no indication of any spot demand. So when there's nothing else, the big players remained sidelined and try to figure out the macro outlook."

Forecast beating German and French growth data eased concerns that the euro zone's two biggest economies were sliding into recession with the bloc's ailing periphery, lifting the euro. The euro pared gains after the German ZEW economic sentiment survey came in worse than expected, however and the euro zone economy contracted by an expected 0.2% during the Q2.

The dollar versus a basket of currencies .DXY was slightly weaker, making commodities priced in dollars cheaper for holders of other currencies. Hopes of fresh stimulus measures in China also supported prices after recent gloomy economic growth figures in the world's biggest consumer of metals.

Source - Reuters

(www.steelguru.com)