Shanghai copper soars

Shanghai Futures Exchange copper rose 0.8 percent to 35,150 yuan ($5,493) a tonne on Tuesday after China's factories slowed in November, underlining the headwinds facing demand. Manufacturing activity in China hit a three-year low in November, an industry survey showed Tuesday, supporting the case for more accommodative policies as authorities seek to prop up growth in the world's second largest economy.
"Clearly this just gives more fodder to the shorts so we're likely to see further weakness," said analyst Daniel Hynes of ANZ in Sydney. In the short-term, metals were boosted by a weaker US dollar, which fell as traders squared long dollar positions ahead of Thursday's European monetary policy meeting. Copper may be pulled downwards with December options expiry on Wednesday, given the pool of open interest around $4,500 puts, said a trader in Singapore. "December options expiring tomorrow might also have a magnet pull for copper," the trader said.