Comex copper prices resume climb, investors eye US jobs data

Comex copper prices were once again in positive territory Thursday, November 3, with a weaker dollar underpinning the base metals complex.

Copper for December settlement on the Comex division of the New York Mercantile Exchange gained 0.70 cents or 0.3% to $2.2375 per pound. Trade has ranged from $2.2180 to $2.2380.

Comex gold for December delivery slipped $15.50 or 1.2% to $1,292.70 per oz. Yesterday, the precious metal breached $1,300, the highest point since October 3.

Trade has been shallow this week with a host of market participants at LME Week in London, but a softening dollar this morning – last down 0.1% to 97.34 on the dollar index – is helping to spur copper higher along with the entire base metals complex.

“Copper prices look more upbeat and sentiment may have picked up enough to push prices through resistance areas. We remain quietly bullish but, as an underperformer, copper may well gather more investment interest,” Metal Bulletin analyst William Adams said.

Yesterday, the Federal Reserve decided to leave rates unchanged only days before the presidential election. The FOMC’s statement suggested that a December increase remains on the cards, with analysts seeing the decision as dependent on data and other developments including the outcome of the US presidential election.

“Heightening focus towards US election result next week alongside net impact to domestic policy and international relations remain at the fore,” a trader said. “Whilst monthly Fed rate setting meeting last night left rates unchanged with surrounding comments providing more positive fuel to program on course for tightening citing only needing some further evidence that inflation and employment were on track toward goals before raising rates.”

In today’s data, the China’s Caixin October services PMI at 52.4 was close to forecast of 52.5 and up from 52.0 in the previous month. This was also the fastest growth for business activity at services companies in four months.

The upbeat services PMI follows stronger-than-expected Chinese manufacturing data earlier this week that suggested that Beijing’s stimulus measures are stabilising the Chinese economy amid the transition to a more service-oriented economy.

From the US, weekly unemployment claims between October 20-27 came in at 265,000, above the forecast of 257,000, but under the psychological 300,000 mark. Challenger job cuts year-over-year in October hit -39.1%, improving over the previous figure of -24.7%.

Preliminary non-farm productivity quarter-over-quarter during the third quarter roundly exceeded expectations at 3.1%, with analysts predicting a 1.7% increase. Labor costs over the same period ticked up 0.3%, missing economic consensus of 1.6%.

Later today, final services PMI, ism non-manufacturing PMI, factory orders and natural gas storage figures are all due.

Now investors and US central bankers await Friday’s US employment report which is one of the last key economic measures before the December meeting.

In a preview of Friday’s blockbuster US job’s report, ADP non-farm employment change in October came in at 147,000, under the forecast of 166,000 and under the previous figure of 154,000.

Meanwhile in European markets, Germany’s DAX and France’s CAC-40 was up 0.1% and 0.6% respectively, while the dollar strengthened by 0.3% to 1.1068 against the euro.

In other commodities, light sweet crude (WTI) oil futures on the Nymex recovered 29 cents or 0.6% to $45.64 per barrel, while Comex silver for December settlement was recently trading $18.145 per oz., down 54.8 cents.

(Editing by Tom Jennemann)

The post Comex copper prices resume climb, investors eye US jobs data appeared first on The Bullion Desk.

from The Bullion Desk http://ift.tt/2ffAB4V
via IFTTT