Copper eases at open; China inflation measure rises

SINGAPORE: London copper edged lower on Tuesday after data from China showed a rise in input prices in February, but the nation's purchasing manager index beat forecasts and sentiment was also supported by positive manufacturing data from the United States.

FUNDAMENTALS

Three-month copper on the London Metal Exchange fell $15 to $9,870 a tonne by 0104 GMT, Shanghai's most active copper contract edged up 0.2 percent to 74,480 yuan.

Positive data from the United States and easing fears about the impact of soaring oil prices on the global economy have helped copper rally by around $600 or more than 6 percent since last week. The latest numbers from the United States showed a modest rise in consumer spending and a 22-1/2-year high for factory activity in the Midwest.

Andrew Burns, the World Bank's manager of global economics, said a surge in the oil price could dent economic growth in developing countries by somewhere between 0.2 and 0.4 percentage points if it remained at higher levels for a year or longer.

Aluminium fell $6.50 to $2,593.50, but the market, trading around its highest since September 200, may have broke out into a new range, with upside technical targets at $2,640 and $2,680.