London copper slipped for a second day on Wednesday after a warning by Federal Reserve Chairman Ben Bernanke renewed worries about the US budget crisis, and as traders moved to the sidelines ahead of global manufacturing data due out this week.
Prices, however, are likely to get support from hopes that demand may improve from top copper consumer China amid signs that an economic recovery is taking hold.
“Over the next four months China’s economy is looking better than it was four months ago,” said Matt Fusarelli, an analyst at Australia-based consultancy AME Group.
“It’s unlikely we would see Chinese PMI fall back below 50 going forward into November, December and January, ahead of the Lunar New year,” he added.
China’s industrial output, exports and retail sales were all better than expected in October, while inflation eased more than expected.
Traders, however, were waiting for more manufacturing data from China, Europe and the United States to provide a clearer picture of global growth and metals demand into next year.
China’s HSBC flash PMI for November is due to be released on Thursday, the same day as European data. US manufacturing figures are also due later on Wednesday.
Three-month copper on the London Metal Exchange eased 1.14 percent to $7,694 a tonne by 0702 GMT.
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