Copper bounces off eight-week low

By AAP

The news follows a report on Wednesday showing that new lending in China, the world's largest copper consumer, fell sharply from a month before, an alarming sign for investors hoping that a so-called mini stimulus started earlier this year would shore up economic growth.

According to analysts, metal prices are liable to struggle in future. "We are starting to get a little more concerned about the 'staying power' of various metal prices at these levels considering that the global macro backdrop is starting to sour more noticeably," Edward Meir, an analyst at INTL FCStone, said.

Copper prices have recovered a little ground but still closed down after hitting eight-week lows on the London Metal Exchange (LME), as poor data from Europe and the US weigh on investor sentiment.

Data in the second quarter from Germany and France, Europe's largest economies, reflected a pattern of weak growth in the region that is being exacerbated by crises in Ukraine and to some extent the Middle East.

Read more here: Business Spectator

    

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